NAICOM Targets Car Dealers, Fuel Stations To Sell Insurance | Independent Newspapers Limited
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Business, Insurance

NAICOM Targets Car Dealers, Fuel Stations To Sell Insurance

Posted: May 20, 2015 at 2:17 am   /   by   /   comments (0)

By Sola Alabadan / News Editor, Sunday


As part efforts to ensure that majority of Nigerians embrace insurance as a way of life, the National Insurance Commission (NAICOM) has resolved to increase channels for distribution of insurance products and is working out modalities to enable vehicle dealers, fuel filling stations and shopping malls, among others, outlets to sell insurance.

The Commissioner for Insurance, Fola Daniel, stated that since the potentials of insurance industry remains grossly untapped in Nigeria in spite of the enormous opportunities available in the market, efforts must be made to address the anomaly.

Daniel addressed journalists at the seminar with the theme: “Transforming the Nigeria Insurance Sector: the Three Years Agenda”, organised by NAICOM for journalists in Benin City, Edo State recently.

He stressed that efforts must be made to address the challenges facing the insurance industry especially as the federal government is desirous at transforming the industry to make it contribute its expected quota to the nation’s economy.

The NAICOM boss added that the commission would issue guidelines on how the intermediaries could help take insurance to the unreached and make insurance products easily accessible for the public.

He said the insurance transformation initiative is expected to translate into enforcement of public insurance, delivering more job/skill, building consumers trust and awareness and increasing access to insurance.

Similarly, NAICOM Director, Inspectorate, Barineka Thompson, affirmed that the broking sub-sector would be restructured into individual brokers, universal brokers and partnership brokers.

Besides, he said the agency business would be restructured into individual agents, corporate agents, insurance company agents, microinsurance agents, web aggregators and referrals.

The Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iweala, had at the insurance summit held in December 2014, identified the challenges facing insurance industry as lack of consumer trust, fragmentation of the industry, low enforcement of compulsory insurance policies, lack of professionalism by some agents and brokers in the industry, and a general shortage of skilled professionals in the entire industry.

She noted that if the potentials of the industry must be harnessed, the challenges must be tackled head-on, adding that due to lack of consumer trust, many Nigerians are skeptical and hold a negative perception of the industry.

She said: “Low enforcement of compulsory insurance: I would want to touch on the low levels of enforcement of compulsory insurance in the country. And in this case, the regulator and most of our government agencies have more work to do.”