A few insurance companies have been penalized by the National Insurance Commission for collaborating with unlicensed middlemen.
The Punch reported that this was stated by the Commissioner of NAICOM for Insurance, Mr. Sunday Thomas, at the director’s conference for the insurance sector in Lagos, which had as its theme, “Driving insurance sustainability through innovations and performance: directors’ engagement.”
Thomas stated that it discovered “inadequate board compliance policies resulting in companies breaching extant laws and regulations with no consequential action by the board during its Risk Based Supervision onsite examination of insurance institutions.
“Recently, the commission was forced to impose penalties on a few businesses that had flagrantly violated the Insurance Act of 2003 by using unlicensed intermediaries.”
Additionally, he stated that it intended to increase insurance penetration from the existing rate of 0.4% to 2.1% per cent by the end of 2033.
The insurance industry’s 10-year strategic transformation roadmap, which was introduced by the sector, included this as one of the goals the regulator hoped to accomplish.
“With a well-coordinated implementation approach, the strategic roadmap is expected to revolutionize the insurance sector,” stated Thomas.
“By 2033, insurance penetration is predicted to increase from the current rate of 0.4 percent to 2.1 per cent, which will significantly raise Nigeria’s insurance market’s ranking on the global insurance map.
“In terms of the insurance industry’s performance and potential, it has grown its premium income annually on average by 15.1% over the years, but this is still far less than the opportunities presented by the Nigerian economy.
Thomas added that the Contributory Pension Scheme has cumulative assets that exceed N17 trillion, according to documentation.
“How will the insurance industry maximize its portion of this expanding fund is the question at hand. Prior to wrapping up, I would like to call the participants’ attention to the necessity of endorsing the government’s efforts to revive the economy and derisk individual and corporate endeavours.”
He claimed that in terms of the insurance industry’s performance and potential, it has grown its premium income annually on average by 15.1% over the years, but this is still far less than the opportunities presented by the Nigerian economy.
“The Contributory Pension Scheme has cumulative assets that exceed N17 trillion, according to documentation.
“How will the insurance industry maximize its portion of this expanding fund is the question at hand. Prior to wrapping up, I would like to call the participants’ attention to the necessity of endorsing the government’s efforts to revive the economy and derisking individual and corporate ventures.”
