Nigeria: NAICOM Charges Insurers To Develop Agric, Microinsurance
By Chris Uwu and Nse Anthony-uko, Leadership
The National Insurance Commission (NAICOM) has enjoined insurance operators to channel their energies to the development of microinsurance and agricultural insurance in order to develop insurance market at the grassroots and increase the sector’s contributions to the nation’s Gross Domestic Product (GDP).
Mr. Fola Daniel, Commissioner for Insurance and NAICOM Chief Executive, made this call at a seminar organised for insurance journalists on “Making Insurance Work for All: The Microinsurance Initiatives” in Calabar, Cross River State yesterday.
He informed that the commission has put in place a draft guideline for microinsurance business and that the draft was being exposed to the industry, experts and other stakeholders for the inputs and contributions before the final draft is released to the industry.
On its part, Daniel disclosed that NAICOM recently conducted a nationwide diagnostic study of microinsurance in collaboration with GIZ, a German Agency for Sustainable Development and Access to Insurance Initiatives (AII) and its local consultants.
The NAICOM boss added that the group was divided into smaller teams and each team assigned to a specific region of the country. The reports turned in by the various teams have been received by NAICOM and it was being reviewed and analysed so that the commission can do the needful, he noted.
Daniel maintained that microinsurance holds great potential for developing the insurance sector in the country, taken into consideration the fact that the population size of the country gives an added advantage to the insurance industry to grow its market.
The development of microinsurance is indeed one of the objectives of the Market Development and Restructuring Initiatives (MDRI), a project of NAICOM designed to increase the premium being generated by the licenced insurance companies and make meaningful contributions to the nation’s economy.
With regards to agricultural insurance, Daniel said the commission expects appreciable development in the industry even though the Nigerian Agricultural Insurance Corporation (NAIC) is empowered by its enabling law to exclusively insure all subsidised agricultural risks in the country.