NAICOM woos states with low insurance penetration


Worried about what it described as ‘very low insurance patronage and penetration’ in some states of the country, the National Insurance Commission (NAICOM) has declared that arrangements have been perfected to engage policymakers in the states.

The Trumpet recalls that insurance companies generated a paltry N10, 000 premium on third-party motor policy from Ebonyi and Lagos states and zero third-party premium from Katsina, Borno, Taraba, Yobe, Nasarawa, Jigawa, and Kebbi states.

Commissioner for Insurance, Sunday Thomas, stated this while speaking on the proposed engagement with the states at the NAICOM’s 2022 retreat for financial journalists in Uyo, Akwa Ibom State.

He said the commission plans to open up the market in all the geopolitical zones by reaching out to the states the commission had identified with low insurance penetration.

“We expect the industry to respond to the efforts by bridging the supply gap and ensure that they follow-up on the commission’s move to create awareness among high ranking policy makers to prove that the industry is ready for the opportunities awaiting them across the country,” he added.

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He noted that the project the commission has with the Kano State government would be a litmus test for the industry, adding that the commission has been implementing various market development initiatives to lift the insurance sector to a global standard.

The NAICOM harped on risk-based supervision on framework to encourage investment in digital capabilities with the automaton of NAICOM’s portal on February 9, 2021 and enforcement of compulsory insurance products through partnership with agencies and states’ capacity development programmes and actuarial competency framework, among others.

Thomas said the commission will also sensitise stakeholders, Micro, Small and Medium Enterprises (MSMEs), Ministries, Departments and Agencies (MDAs) on the benefits of insurance through insurance desk officers and introduction of regulatory reforms and policies.

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