NAICOM strategises to achieve 40% Insurance penetration target

The National Insurance Commission (NAICOM) has said it is strategising towards achieving its 40 per cent insurance penetration target.

The commission cited some of these activities it has undertaken towards achieving the target to include providing enabling environment and framework for the excluded and low income population to participate and benefit from insurances; the development of legal and regulatory frameworks on takaful and its micro-insurance policy whose guidelines were issued in 2013.

NAICOM’s Deputy Director, Financial Inclusion, Hajia Halima Gajiram, stated this while presenting a paper titled: Insurance Industry Growth in Nigeria: The Financial Inclusion Option,” at a recent media retreat organised by the commission in Uyo, Akwa Ibom State.

Gajiram, said as part of the strategy, the commission would also promote referral agencies and new insurance agents.

She said the commission will also define and implement insurance literacy programmes, ensure the enforcement of quick settlement of claims and sanctions for infractions, ensure establishment of a dedicated department complaints bureau in the commission as well as incentivise insurance companies to develop micro-insurance products.

She lamented that poor public awareness and lack of skilled manpower are some of the challenges the sector was facing, stressing that it was as a result of this, the commission has projected positive outlook for both Takaful and micro-insurance going forward.

Gajiram announced that a number of stakeholders’ engagements workshops and sensitisation programs are lined up for the year 2021, while the market development and enforcement of compulsory insurance drive embarked by the commission is expected to improve the uptake of Takaful and micro-insurance.

It was gathered that the federal government, through the Central Bank of Nigeria (CBN) had launched the National Financial Inclusion Strategy 2012 with the Strategic Objectives of ensuring that a clear agenda was set to significantly increase both access to and use of financial services by the year 2020.

It is also to ensure that the concerns and inputs of all stakeholders are considered and roles and responsibilities defined before regulations and policies are set for financial inclusion.