Law Union MD identifies reform focus for insurance sector growth

The nation’s insurance industry would perform better and contribute more to economic development, if the industry regulator would pay attention to critical issues including rate-cutting, statutory deposits with CBN, enforcement of compulsory insurances and awareness.

These issues he said form major challenges which the industry must address to become profitable, deepen penetration and create value in the economy.

Jide Orimolade, managing director/CEO, Law Union & Rock Insurance plc, made the remark during an interaction with journalist in Abuja after a courtesy visit on the newly appointed Commissioner for Insurance, Mohamad Kari.

He said the “appointment attests to his hard work, diligence and passion in contributing towards the growth and progress of the Nigerian insurance industry”.

Orimolade expressed confidence that the new NAICOM Chief “will drive more positive reforms in the industry and consolidate on the achievements of the former Commissioner, Fola Daniel”.

Orimolade bared his mind on several issues in the insurance industry which he the regulators should look into or continue to improve upon for betterment of the industry

On the issue of rate-cutting, Orimolade said “that while competition is good, price should not be the only basis for competition as this has led to intense price war which has invariably robbed the industry of huge amount of premiums yearly.

He said insurance companies need to “focus on creating value for customers and adopt risk-based pricing rather that rate-cutting. Also, there is need for product innovation, increase in awareness as well as build trust and confidence in the customers by keeping the ultimate promise of prompt claim settlement”.

On the issue of statutory deposit with the CBN, He said “it will be nice if the new Commissioner could push for improved interest rate than what currently obtains.

For compulsory insurance products, Orimolade lauded the efforts of the Commission and requested for “increased enforcement drive and suggested the setup of an Insurance Task Force by the Commission in conjunction with other stakeholders to further improve on the level of compliance”. He said he will further engage the Commission on this to drive growth of the industry.

Modestus Anaesoronye