Monday, September 09, 2019 /
10.30AM / Bukola Akinyele for Proshare WebTV / Header Image Credit: Thisday
In a review of key developments in the Nigerian Insurance Industry from September 2nd to 7th, 2019, the National Insurance Commission, NAICOM solicited the support of other financial regulatory bodies as the nation prepares for the recapitalisation of the insurance sector by June 2020.
Acting Commissioner for NAICOM Mr. Sunday Thomas said that with a penetration level of under one percent, the Nigerian Insurance Industry needs to be repositioned to contribute more meaningfully to the economy.
Thomas was speaking at a forum organized by NAICOM in collaboration with the College of Insurance and Finance Management, CIFM a training arm of Chartered Institute of Insurance in Nigeria.
He believed that successful economies across the globe had vibrant insurance sectors, a situation Nigeria could learn from.
Thomas listed some of the reforms in the last few years that have shaped the insurance industry, to include; no premium no cover, risk based supervision, corporate governance code, claims settlement, expansion of distribution channels, market conduct, financial inclusion and communication technology advancement.
Coronation Research Report On Nigerian Insurance Industry
In a related development, Coronation Merchant Bank Research Team last week released its report on the Nigerian Insurance Industry, titled "From Lagoon to the Ocean".
The key highlights of the report revealed the fact that the planned recapitalization drive of NAICOM, will see the number of companies in the industry fall from 59 to 25 by 2020.
Mr. Guy Czatoryski the Head of Research, Coronation Merchant Bank, noted that rolling out micro-insurance and adopting technology will deepen insurance penetration in the country.
Currently insurance penetration rate for Nigeria is 0.31% compared to India which has 3.69% penetration.