Insurance regulators and operators should champion drive for penetration – Dominic Ichaba
Dominic Ichaba, the Chairman of the Insurance & Pensions Committee of the Nigerian Bar Association Section on Business Law (NBA-SBL) speaks to BUSINESSDAY Law Editor, THEODORA KIO-LAWSON about the low rate of Insurance penetration in Nigeria, opportunities in the industry for lawyers, the role of insurance regulators and operators and how the Section on Business Law continues to build capacity for lawyers in Nigeria.
As the Chair of the NBA-SBL Insurance & Pensions Committee, please tell us about your committee; how it fits into the vision of the Section, who your members are and what advantages it offers to members, prospective members and the business community?
The Committee was constituted in the last quarter of 2012. The objectives of the Committee are, among others, to advance Insurance and Pensions Awareness and promote Insurance and Pensions Law Practice among Nigerian Lawyers and Law Firms. The Committee’s objectives align with the objective of NBA-SBL, which includes the promotion of Business Law practice among Nigerian Lawyers and Law Firms.
Members and prospective members of the Committee benefit from increased awareness of the industries and the opportunities for lawyers in the industries as well as advanced knowledge of the insurance and pensions law. This will enable members to position properly and take advantage of the opportunities of the developing insurance and pension industries.
Tell us about your forthcoming event and the objective of this seminar?
The event is a one-day Seminar holding on 26th October 2017 at The Metropolitan Club in Victoria Island, Lagos.
The Seminar is intended to expose participants to the opportunities available for lawyers in the insurance industry and also to contribute to the ongoing effort of the Insurance Regulator and practitioners to increase insurance penetration and growth in Nigeria. In other words our Committee is interested in baking a bigger insurance cake so that lawyers can have a bigger bite of the cake.
You have a session on the topic, ‘Insurance Law Practice, Beyond the Status Quo’ please enlighten us, what is the Status Quo right now? And how far beyond, are you looking to go?
Currently, lawyers are not doing as much as they could do in the insurance industry because many lawyers do not know what opportunities exist for legal work in the insurance industry.
There are many areas of legal work in the insurance industry for lawyers in other climes not yet open Nigerian lawyers. Besides, the Nigerian insurance industry is far from achieving its potential. For instance, while insurance penetration (the rate of insurance contribution to GDP) is 12% in South Africa, it is less than 1% in Nigeria. This means that there is plenty of room for growth of insurance in Nigeria. Growth brings more work for insurance law practitioners.
The second topic, ‘Insurance Penetration: The Role of Law And Regulation.’ Where are we penetrating and who will champion this penetration?
Uncertainties and unforeseen eventualities are the undesirable part of our world and they expose us, our loved ones, businesses and organizations to risks. These risks include loss of property or damage to property such as buildings, factories, vehicles, equipment, loss of life, permanent disability, sickness etc. Insurance penetration is low in Nigeria because most people and organizations in Nigeria fail to take insurance to cover these risks. Insurance should penetrate any where that property may be lost or damaged, any where that life may be lost prematurely, any where people are capable of being critically sick or suffering disability etc. In other words, insurance should penetrate everywhere in the society.
The insurance regulator and operators should champion the drive for insurance penetration. Lawyers and other professionals that work for the insurance industry should be interested in and contribute to insurance penetration. This is enlightened self-interest because the growth of the industry is increased opportunities for them.
We understand your third session would be Looking at “Innovation, Law & Regulation in Insurance, Strange Bedfellows?” What sort of innovative trends are insurance law practitioners looking at?
We are looking at innovation that will lead to diversified product portfolio, channel expansion, better insurance contract documentation by using lawyers, prompt responsiveness to claim settlement, better market engagement. These developments will put more on the table for all the stakeholders including insurance law practitioners.
How would the conversation at this event impact on the nation’s economic development?
Insurance gives people and businesses the confidence to set up structures for producing goods and services that grow the economy knowing that adverse incidents can be made good through insurance covers. Insurance enable businesses to rebound quickly after suffering loss through the payment of claims on the loss covered. Insurance premiums are not immediately required for payment of claims and other operations are invested in the money and capital markets thereby funding economic activities and infrastructure development. Insurance will provide employment for many people. Insurance operators and their employees pay taxes.
Who are your key speakers at this event and what informed your choices in the selection of your speakers?
Our key speakers and discussants at this Seminar are insurance law experts and practitioners, management consultants and experienced insurance law and regulation experts. They include Prof. Chioma Agomo, Dr. Omogbai Omo-eboh, Mr Owolabi Salami, Dr Talmiz Usman, Dr Simon Akaayar, Mrs Bisi Lamikanra, Mr Shola Tinubu and Mr Niyi Tayo.
The Commissioner for Insurance, Mr Mohammed Kari himself will be at the event. The speakers and discussants have been chosen because they are distinguished experts with years of experience in the subject areas they will be speaking to at the Seminar.
What do hope to see them bring to table?
I expect that they will bring their knowledge of the subject, expertise and experience to the table. They have a good knowledge of the Nigerian environment as well as the global perspectives and trends.
How often does your committee have these engagements and how do you connect?
For now, our Committee runs a programme like this Seminar open to all lawyers once a year. Members of the Committee meet annually as well, during which relevant subjects of interest are taken for the benefit of the members. The executives of the Committee meet every other month.
What does the NBA-SBL hope to achieve with these committee engagements?
Increased knowledge of the subject matter areas, increased awareness of opportunities for lawyers in the industries, improved quality of legal service provision to the businesses and collaboration among members.