NAICOM bar insurers in states where they don’t have branches

Determined to ensure increased consumer access to insurance services and in line with its market development initiative efforts to deepen penetration, the National Insurance Commission (NAICOM) says it will no longer allow insurers to do business in states where they do not have branch offices beginning from next year.

Consequently, NAICOM is opening before the end of the year 14 new branch offices across the country to add to its existing five regional office making 19.

This is to enable us increase insurance awareness in the grassroots, work closely with the state governments on enforcement of compulsory insurances and also deepen our supervisory roles, Mohammed Kari, commissioner for Insurance/CEO of the NAICOM said.

Kari who spoke at the 2018 Insurance Industry Professional Forum held in Abeokuta, Ogun State said the commission more than ever before is ready to enforce compulsory insurance by collaborating with the state governments.

“We are going to enable the states earn IGR from insurance services, so that they can work with us to enforce compulsory insurance”.

“Part of the selling point is the fact that it is going to enhance employment initiatives in the states as well as improve their Internally Generated Revenue (IGR) within the law.”

On insurance companies without branch offices in states, Kari said “Even if you are owned by that state government, you will not do business there if you don’t have branch in that state. We will ensure this happens, Kari stated.

“As a regulator, while we will be transparent in our dealings with the operators, we expect that the operators will be sincere in their dealings. While we will be reasonable in our developmental efforts, the operators must be responsible.

According to the Commission, the insurance industry growth drivers include active and informed consumers; technology and low barriers to entry; products specialization; diversified insurance products; professionalism in service provision and regulatory coordination in compliance with best practice.