The National Insurance Commission (NAICOM) has restated its commitment to promote micro insurance and by so doing, deepen insurance penetration in the country.
This is even as the insurance industry regulatory institution also indicated its intention to collaborate with the Nigerian Governor’s Forum with a view to using the latter’s grassroots network to bring the more Nigerians into the insurance net.
Giving these hints at a seminar for Insurance journalists in Benin, Edo State with the theme, “Expanding Frontiers for Insurance Market Development and Penetration in Nigeria, the Commissioner for Insurance, Mallam Mohammed Kari, said as part of measures to deepen insurance penetration at community levels, the commission was promoting micro insurance framework and encouraging insurance companies to leverage on the opportunities availed by ICT to deliver their insurance products and services to rural poor and low income earners.
The NAICOM boss, who was represented at the forum by the Deputy Commissioner for Insurance (DCFI), Mr Sunday Thomas, expressed optimism that the partnership with the Governors’ Forum 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 explained: “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.
According to him, as part of the regulatory measures being put in place to deepen micro insurance in the country, the commission has directed that within 18 months, 17 insurance firms selling micro insurance products should acquire fresh licences while those with non-life micro insurance products should wind up their operations within the period.
In addition, he disclosed that insurance companies with life classes are also required within a period of two years to transfer the life classes to a dedicated micro insurance company within this period.