NCRIB warns against heating the polity ahead 2019 elections

To avoid instability in the economic and business environment, the brokerage fraternity of the Nigerian insurance industry, the Nigerian Council of Registered Insurance Brokers (NCRIB) has advised politicians to be conscious of their activities as the nation prepares for the 2019 general elections.

The Council believes that heating the polity will not only bring instability in the economy, it will impact negatively the inflow of investment into the country.

Shola Tinubu, president and chairman of Council, NCRIB told journalist during a press briefing in Lagos that “though as a professional body, we must stay above party politics, but we are duty bound to positively impact on our political environment as it must not elude us that economy and politics are inextricably woven”.

Tinubu said the Council would like to use this medium to enjoin Politicians to endeavor not to overheat the polity in view of the potential negative effects of such actions on the socio-economic development of the nation.

“There is no better catalyst for investment in any economy than stability of the polity. Therefore, we enjoin our politicians to make the welfare and progress of the nation and its people their primary agenda and the focus of their noted actions.”

Tinubu, while commending the Federal Government’s Rent-to-Own product designed to enhance affordability by eliminating the need for down payments and other costs associated with normal mortgage loan arrangements, he said this definitely will go a long way to address the housing deficit, a serious challenge that any government should tackle headlong.

He however stated that, the Council wishes to enjoin the Federal Government, to ensure that in embarking on this laudable feat, insurance should be given its rightful place.

“Section 64 & 65 of Insurance Act 2003 stipulates a Compulsory Insurance for ongoing construction projects. It therefore behoves the Federal Government to insist that appropriate insurance policies be in place for these houses at the construction stage, and for the win-win benefits the project holds for government, the allottees and their families.”

The Federal Government it will be recalled recently announced that N197 billion has been spent to construct 26,002 houses across the country, while 13,953 homes across the country were also renovated.

On the recent Tier based recapitalisation announced for underwriting firms in the country, the NCRIB boss noted that insurance companies would be looking at different options to respond before the deadline of January 1, 2019.

“It is definite that several options would be contemplated by the companies, including the options of injection of capital, mergers and acquisitions. Whichever strategy chosen and no matter how disruptive, I would like to enjoin the companies to focus on how to grow the insurance industry as well as how to make insurance an imperative.

“On the part of our Council, we have set relevant Committees in motion to see extent to which this new policy thrust would affect our members as the end consumers have begun to express concern as to the implications for them.

“Anytime the insurers market goes into flux, the broking sector becomes challenged to guide clients to the best affordable security.”

On a possible Tier based for insurance brokers, he said the Council is concerned that a new NAICOM guideline may be seeking to Tier Brokers, which is not seen as required since Brokers are professional firms and not risk carriers. “However we have confidence in the approach of the commission to ensure all aspects are fully discussed before decisions are made”.