Insurance penetration: NAICOM strategises on development focus

The Commissioner for Insurance, Mr. Fola Daniel, has said that National Insurance Commission has identified three main aspects it intends to develop as part of the commissions strategy to lift the industry.According to him, these areas of insurance being earmarked for development include micro insurance, Islamic insurance and agricultural insurance.He said, "NAICOM is raising awareness on the development of micro insurance, takaful or Islamic insurance and agricultural insurance in the country."According to him, the development of micro insurance is both a moral and economic imperative, not only for the promotion of inclusive financial systems but also for the equitable mitigation of risks.He noted that the Nigerian Oil and Gas Content Development Act 2010 also offered the countrys insurance industry leverage to further expand its market.He said, "Oil and gas insurance guideline was rolled out early this year. While it may be too early to judge its impact of oil and gas insurance on the overall performance of the industry, it has become apparent that we still have yawning capacity gap in that subsector."This realisation, he added, prompted the institution of an industry committee to explore the possibility of an oil and gas pool. The committee, he added, was still working with the hope that the product of its deliberation would aid the industrys quest for enhanced industry capacity.Daniel observed that the rate of insurance awareness had become relatively higher than it was in 2007, adding that the perception of the public about insurance was also already changing for better. He said that the campaign on the enforcement of compulsory insurance in the country was reaching a climax and that the insurance companies were already beginning to key into the project.Beyond sales marketing, he said that some insurance companies had actually joined NAICOM in sensitising the public and creating awareness on the existence of compulsory insurance through advertisement campaigns.
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