By Chris Agabi
Worried by the spate of the high incidences of building collapse across the country and noncompliance of the compulsory insurance of public buildings, the National Insurance Commission (NAICOM) is set to ramp up compliance as a measure to grow premium income and enhance the safety of public buildings.
To drive home this conversation to national consciousness, NAICOM dedicated its National Insurance Conference 2023 exclusively to insurance of public buildings conversations.
The conference which began in Abuja on the 23rd of October, 2023 has the Theme: Redefining Safety: Insurance Solutions for Public Buildings and Buildings Under Construction.
Speaking at the event, the CEO National Insurance Commission and the Commissioner for Insurance, Mr. Sunday O. Thomas told the gathering that he envisioned “a new era of collaboration which will facilitate improvement in National Safety Standards” the enforcement of compulsory insurances, especially the insurance of public buildings.
He said the conference “is only one out of numerous efforts of the Commission at creating the needed awareness of the general public of compulsory insurances.”
“It has also created the platform to strengthen collaboration with relevant government and non-government agencies and other stakeholders. This is being done to ensure that enforcement of all classes of compulsory insurances across the country are carried effectively” the NAICOM CEO stated.
He said NAICOM is implementing a new agenda that will drive insurance premium income and insurance growth in Nigeria.
“I am pleased to mention that over the next decade (2024-2033), the Insurance industry will seek to continue its transformation journey along the following Seven (7) strategic thrusts with the objective of achieving the corresponding goals;
i. Transform the regulatory environment to sustain the industry growth
ii. Transition to risk-based capital model
iii. Promote insurance awareness and adoption
iv. Broaden insurance product offerings and improve effectiveness of distribution channels
v. Enhance digitalization of the insurance industry
vi. Deepen the industry’s talent pool and capabilities
Vii. Support Nigeria’s economic transformation and sustainability agenda” he said.
He said this target is without prejudice to the numerous challenges the industry faces.
“Notwithstanding the growth that had been sustained, the roadmap enumerated some of the challenges affecting the desired growth of the insurance industry which had persisted, such as: Talent gap, Comparatively low public awareness, Insurance affordability, Lack of trust and confidence in insurers, Cultural and religious bias, Inadequate distribution channels, Low enforcement of insurance, and others.”
In terms of its performance the NAICOM CEO said the industry has done significantly well. “The industry premium income between 2014 and 2022 grew at an average of 13.6%; from a premium income of N282 Billion to N726.2 Billion. The total assets of the sector also grew at an average of 12% for the same period; from an asset base of N827.5 Billion in 2014 to N2.33 Trillion in 2022” he said.
