The National Insurance Commission (NAICOM), is working assiduously to promote micro insurance with the view to deepen Insurance across the country.
The Commission is also going to tap into the network of the Nigerian Governors’ Forum to further drive insurance penetration.
The Commissioner for insurance Mohammed Kari who gave the indication also said as part of measures to drive penetration at community levels it was promoting robust micro insurance framework and encouraging insurance companies to leverage the ICT technology to sell insurance to the rural poor and low income earners.
Kari, while speaking at a seminar for Insurance journalists in Benin, Edo state with the theme, “Expanding Frontiers for Insurance Market Development and Penetration in Nigeria,’’ was organised for journalists, through the Deputy Commissioner for Insurance (DCFI), Mr Sunday Thomas said the alliance would enable every household in the country to have access to insurance and enhance the industry’s contribution to the Gross Domestic Product (GDP).
He recalled that in 2010, Nigeria’s insurance sector was ranked fourth in Africa in terms of premium income.
He also added that the sector was 10th in terms of insurance density (premium per capital) and 8th in terms of penetration adding that the poor ranking in the international sector informed the decision to take some corrective steps.
Kari said that there was a positive correlation between insurance and economy development.
“The strategic policy for the commission this year is essentially targeted at deepening the market and sustaining all that we have achieved in the past years, especially the Market Development and Restructuring Initiative that was introduced in 2009.
“We are getting into the second phase of that initiative because we have achieved relative good awareness,” he said, adding that the commission would commence the second phase which would leverage the first phase.
He said the 17 insurance firms selling micro insurance products should acquire fresh licences within 18 months.
He explained that those with non-life micro insurance products should wind up their operations within 18 months, while those with life classes should not in later than 24 months transfer the life classes to a dedicated micro insurance company within this period.