Fola Daniel: A legacy of dynamism, market development in insurance industry
Eight years is just like yesterday, when Fola Daniel was appointed the Commissioner for Insurance/CEO of the National Insurance Commission (NAICOM), to oversee an industry that desired development and growth, having been largely relegated amongst other financial service providers in Nigeria.
Today, not only has the insurance industry witnessed dynamism and respect by market observers, the sector opened up for development attracting quite a lot of local and foreign investors wanting to take position in the industry.
Significantly, what has made the difference in the industry more than ever before are market development initiatives under the Market Development and Restructuring Initiatives (MDRI) which opened up opportunities through implementation of the different compulsory insurances? Amongst them include the Motor Third Party Insurance; Public Building Liability Insurance; Building Under Construction Insurance; Professional Indemnity Insurance as Well as Group Life Insurance.
Other growth opportunities driven by the Commission include the micro insurance, Takaful Insurance which targets to increase insurance penetration, financial inclusion and poverty reduction among Nigerians.
As at the end of December 2014, insurance sector gross premium has grown from less than N100 billion in 2007 to N302 billion, while total asset has also grown to N711.4 billion from about N347.1 billion in 2007.
Again, not only has the figures risen, the insurance companies have become stronger with more liquidity to meet claims obligation, following the implementation of the policy on ‘No Premium No Cover’. Like some industry players have said this is the biggest thing to have happened to the Nigerian insurance industry, having overcome the era of huge premium debt.
Government agencies and parastatals, which hereto procured insurance on credit and owed insurance companies debts running into billions of naira, now take insurance and pay for it, leading to increased market liquidity, good investment income and better profitability.
A major characteristic of Fola Daniel’s administration was increased corporate governance, transparency in the operation of insurance business, as there were no more sacred cows that could not be touched. Discipline became the order of the day, as NAICOM under the present administration had the courage to deal with firms and CEO’s that mismanaged investors fund, or undermined the position of policyholders.
The implementation of International Financial Reporting Standard (IFRS), complimented this oversight functions and Nigerian insurance Companies today can be put side by side with their peers in other advanced market. This also not only enhanced data collection in the industry, it led to early submission of returns by companies, a situation that hitherto made insurance companies elements of mockery at the Nigerian Stock Exchange while fines were endless.
This regulatory strength brought respect and confidence on the Nigerian insurance market, particularly foreign investors who have linked their attraction on the market for two reasons- growth potential and enhanced regulation.
Insurance consumers following improved regulation have got greater confidence in taking up insurance, since they realised the power of NAICOM to protect policy holders through its Consumer Protection Bureau, where claims issues are resolved at no cost to the insured.
Insurance education, awareness and capacity building has been taken seriously by the Fola Daniel led NAICOM, where numerous partnerships has been development particularly multi-sector units to enable them appreciate the relevance of insurance and drive compliance in their different jurisdictions.
Efforts in this direction informed the annual seminar for insurance correspondents amongst other trainings which the Commission has used as platform to deepen insurance awareness among the citizenry.
While Fola Daniel, rounds up his eight years tenure as NAICOM boss having been appointed by late Umaru Musa Yardua, former president of Nigeria in 2007, he has left indelible footprint in insurance regulation, characterised by integrity and the courage to correct the wrongs no matter who is involved. He has succeeded in strengthening the industry for international reputation, fought prevalence of fake insurance documents, grows the business for increased shareholder value and enhanced contribution to the nation’s GDP for the benefit of all Nigerians.
Modestus Anaesoronye