Commissioner for Insurance, Fola Daniel has urged the insurance operators to adopt more dynamic strategies that would deepen insurance reach among the vast populace in the country.
Speaking at the insurance professional forum in Abeokuta, he said that the rebasing of the nation’s economy which reduces Insurance sector contribution to gross domestic product (GDP) from 0.7% to 0.6% has placed enormous wake-up call on the insurance industry.
He expressed the need for the commission and operators to deliberate policy and come up with new ways of doing business to achieve good result.
“We must as a matter of deliberate policy come up with new ways of doing the business in order to achieve better result. Our marketing strategy must change; our product design and packaging must change; our approach to policyholders and their complaints must change and all hands must be on deck to ensure that the message of insurance is taken to the grass roots,” he added.
Speaking further he said “If we must move the insurance market from its present level to an optimal pedestal within the financial services sector, then there must also be a consensus on how best to tackle the challenges. We have a lot to offer but we seem not to be taking advantage of the huge potential before us. The fundamentals for thriving insurance industry are there in the country – a vast population, an active economy and a well-capitalised industry.”
He said that the National Insurance Commission (NAICOM) was actively committing resources to up scaling insurance education in tertiary institutions in the country, adding that the effort to promote education at both secondary and tertiary levels have culminated in the expenditure of over N15 million for the production of textbooks and professional course materials at both levels of education.
Another major effort of the Council according to him was the inauguration of the Insurance Industry Consultative Council (IICC) which would serve as a dispute resolution organ for intra-industry conflict. The IICC would also serve as a voice on national issues on behalf of the industry as well as articulate growth agenda for the sector.
He however said that the Commission is currently actively engaged in promoting financial literacy, a major project of the federal government to which all other financial services regulators are committed.
Daniel stated that the promotion of financial literacy in the country at this time coincides with the Commission’s focus on Microinsurance, Takaful and agricultural insurance as a vehicle for reaching the teaming masses.
He pointed out that a number of insurance companies have entered into partnership with telecom companies as a means of selling insurance products to their vast clientele. He advised them to continue to encourage and support all activities aimed at uplifting the insurance industry.
