NAICOM meets Finance ministry over plans to insure national assets, set to review third-party motor insurance

National Insurance Commission (NAICOM) and the Ministry of Finance have met over plans by Federal Government to insure all national assets across the federation.

Commissioner for Insurance, Sunday Thomas

This is just as NAICOM has also entered into discussion with insurance operators to review the N5, 000 premium on the third-party motor insurance policy in the country.

At an event held this week, representatives of the Ministry met with the insurance sector regulatory in the country over the development.

Vice-Chairman, Sub-Committee, Publicity and Communication Sub-Committee, of the Insurers Committee, Mrs Ebelechukwu Nwachukwu, disclosed that the federal government officials were at the Insurers Committee meeting held in Lagos.

Insurers Committee was established by NAICOM and synonymous with Banker’s Committee, with membership drawn from NAICOM directors and CEOs of all underwriter insurance companies in Nigeria.

Nwachukwu, who also doubles as the Managing Director, NSIA Insurance Company, explained that, “The representatives of the Ministry of Finance spoke to us on the willingness and readiness of the federal government to insure all its assets.

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“As a result of the development, we are going to be having a meeting between the industry and the Ministry of Finance to discuss all the modalities and guidelines.

“Our discussion will address issues around data, premium payment, amongst others.”

According to her, the industry is excited that the government was paying attention to insuring its assets and sustain the culture, as this would set a positive pace.

Nwachukwu also disclosed that a discussion was also ongoing between the operators and the commission to review the N5,000 third-party motor insurance policy.

She said that the Commissioner of Insurance, Mr Sunday Thomas, following reactivation of the Insurers Committee, directed it to determine the adequacy of the current premium for the third-party motor insurance policy.

“The committee has received the permission of NAICOM to review and determine the adequacy of the current premium for the third-party motor insurance policy.

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“When you have a third-party policy, it is necessary that you revisit it from time to time, so the technical and actuarial professionals will start working on that,” she said.

The managing director hinted that the insurers’ committee has also agreed to scale up the ECOWAS Brown card by going into automatic issuance in Nigeria.

“Issues around enforcement of the brown card issuance and lots of issues around the claims that have occurred for people who have it were also discussed extensively,” she said.

She also revealed that NAICOM also charged operators to show more interest in financial inclusion, review the guidelines around it and report to the commission.

“The commission will like to get feedback on anything that makes people show more interest in microinsurance and Takaful insurance,” she said.

On IFRS 17 and implementation, Nwachukwu noted that the regulator had encouraged all the insurers to ensure that they gather analysis and get ready by putting in place all internal requirements and board for the implementation.­­

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The NSIA boss disclosed that the rebranding project of the industry has been extended and would be re-initiated soon with a new structure that was different from the former.

It was also revealed that the sub-committees of the Insurers Committee have been reduced from eight to six. She listed the sub-committees as Corporate Governance and Ethics, Market Development and Government relation, Customer Services, Credentials Guidelines, Technical and Publicity/ Communication subcommittee.

The meeting was attended by top directors in NAICOM and Chief Executives Officers of insurance companies.

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