The National Insurance Commission (NAICOM), determined to create shareholder value and make investment in insurance industry more attractive, has asked shareholders to demand for their companies’ action plan that will enable them key into growth reforms going on in the sector.
This has become necessary as the commission through its reform initiatives has opened up window of opportunities that would result in growth in premium, strong profitability and good return on investment capable of attracting more local and foreign investors.
Ibrahim Hassan, deputy commissioner for insurance, technical, made the disclosure on Tuesday at a workshop for Executives of Shareholders Association and Independent Directors of Insurance Companies in Lagos.
Hassan stated that NAICOM has in the last three years been initiating developmental policies aimed at strengthening and deepening insurance penetration in order to enhance insurance sector contribution to GDP through its market development and restructuring initiatives (MDRI).
“These initiatives include development of agency system, enforcement of compulsory insurance amongst which are the Motor Third Party Liability Insurance, Group Life Insurance, Builders Liability Insurance, Occupier Liability Insurance and Health Care Professional Indemnity Insurance”.
According to him, there are also efforts to expand the market through the adoption of financial inclusion, which is expected to drive development of micro insurance as well as Takaful, which, he said, is a fertile ground for most companies to do business instead of relying on big ticket deals that seldom come.
“We believe that if these programmes are well marketed by the insurance companies, there would be a quantum leap in their premium income which will invariably enhance their profit and ability to pay good dividends to shareholders”, he stated.
On the ‘No Premium No Cover’ policy which the commission enforced since January, the NAICOM boss said it has started addressing the problem of outstanding premium which was big challenge for the industry.
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