By Sola Alabadan
The National Insurance Commission (NAICOM) has been pursuing vigorously, the market development and enforcement of compulsory insurance products in order to improve the uptake of Takaful and Microinsurance as well and consequently meet the insurance industry financial inclusion target.
Insurance industry target was set at achieving 40% penetration amongst adult population by the year 2020 (from 1% in 2010).
Zubairu Darazo, Head, Takaful Insurance, NAICOM, who stated this while presenting a paper on “Insurance Development In Nigeria; The Financial Inclusion Option” at a seminar organised for insurance journalists in Uyo, Akwa Ibom State recently.
He also informed that the commission intends to undertake a number of stakeholder engagements workshops and sensitisation programmes in 2021, to meet the financial inclusion target.
Going forward, he said the commission projected positive outlook for both Takaful and Micro insurance, as part of efforts to bring more people into the insurance safety net and deepen insurance penetration in the country.
To achieve the target of 40% adult population penetration, NAICOM has been pursuing through a broad range of coordinated interventions including providing enabling environment and framework for the excluded and low income population to participate and benefit from Insurances, through the development of legal and regulatory frameworks on Takaful and Microinsurance. In this regard, the Commission issued the two Guidelines in 2013.
NAICOM also liberalized Insurance intermediaries as there are referral agencies and new insurance agents, while defining and implementing insurance literacy programmes.
Besides, the commission has been enforcing quick settlement of claims and sanctions for infractions through the establishment of a dedicated department complaints bureau in the Commission.
The insurance regulator equally incentivise insurance companies to develop micro-insurance products, Takaful insurance and index-based insurance products to serve low-income/rural individuals.
As at today, NAICOM has licensed five Takaful Operators, as well as icensed four four Microinsurance Operators (2 State licenses, 1 Unit and 1 National license)
Hw later listed the challenges facing the financial inclusion project, to include lack of proper understanding of both concepts by the operators and consumers, poor public awawareness and lack of skilled manpower.
