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Insurance is compulsory for MDAs and others

Insurance is compulsory for MDAs and others
Photo by Erik Odiin- Ask Nigeria

The insurance sector is an expanding economic sector in Nigeria.

One of the most durable and rapidly expanding economic sectors in Nigeria is the insurance sector. The industry has made significant contributions to the real GDP sustainability of the economy as well as offering relief (mainly) to policyholders who were the victims of various unlucky accidents. When other economic sectors began to falter, the sector stood up to previous downturns in the economy and the consequences of the global COVID-19 pandemic. The market also demonstrated its unstoppable ability to retain clients, which is an indication of solid financial stability and load capacity.

For those involved in the industry, 2022 stood out as a year of mixed fortunes, marked by glaringly negative economic indicators such as: a national debt burden of over N42 trillion with its ballooning debt servicing, low productivity, 60% youth unemployment and underemployment, an epileptic power sector, hyper-inflation and exchange rate fluctuations, decaying infrastructure, unprecedented corruption and insurgency, approximately 133 million Nigerians living in extreme poverty, and other unpleasant things. According to a breakdown of the information obtained by National Economy from the National Insurance Commission (NAICOM), the insurance industry generated N514.6 billion in gross premium income (GPI) in 2020 and N616.6 billion in the 2021 fiscal year (a 20% increase).

Economy shouldn’t sink before it hands over to the next administration.

The sector generated N532.7 billion GPI in the third quarter of 2022, an increase of roughly 15% Year on Year (YoY) from the second quarter, according to NAICOM’s quarterly report, while observers wait for the industry’s overall GPI for 2022. With this, NAICOM has voiced hope for 2023, stating that the industry is expanding and that this expansion must be sustained to create a robust insurance sector that is able to increase its contribution to the country’s GDP. However, all players must adhere to laws exactly.

As 2023 approaches, stakeholders in the sector have pleaded with the Buhari-led administration to prevent the economy from slipping into an irreversible coma before it is handed over to the following administration in the second quarter of the year. Speaking with Basil Olusegun Bankole of Sovereign Trust Insurance, the DGM for Corporate Communications & Investor Relations, he praised NAICOM for its recent upward review of third Party motor insurance and pleaded with the regulator to guarantee strong policy enforcement.

Issuing policies and directives without a good force would harm efforts.

It would not only jeopardize the efforts but also give everything a childish appearance, in his opinion, to issue policies, regulations, and directives without a corresponding force of enforcement. How well has enforcement gone so far? The new third Party motor insurance to N15,000 and the 5% refund is a step in the right direction. Implementation has always been a difficulty. The DGM also demanded that the Professional Health Indemnity insurance Coverage be critically examined because it has been noted that many hospitals, physicians, and other healthcare providers do not take it seriously.

Bankole suggested that any contractor seeking a contract from the public or private sector should be required to produce the majority of mandatory insurance products, such as those under the Market Development Restructuring Initiative (MDRI), which includes third party, professional health indemnity, and others. He urged the federal government to make sure that all of its Ministries, Departments and Agencies (MDAs) obtain insurance as and when required, both for their physical properties and for their lives as they are supposed to do, noting that the time of creating extraordinary budgets when unlucky events occur should have passed.

Vital for insurance companies to collaborate with the Police Force.

Heirs Insurance placed a high premium on working constructively with all market participants to ensure customer satisfaction. One example is coordinating with banks to access “BVN” data while onboarding insurance customers, among other things. In an interview with Mr. Wasiu Amao of Heirs Life Insurance, he stated that it was crucial for insurance firms to work with the Nigerian Police Force to establish a data bank for the issue and storage of police reports on traffic cases and other accidental deaths across the country.


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Admin
1
10 days ago

Insurance is compulsory for MDAs and othersThe insurance sector is an expanding economic sector in Nigeria. – Express your point of view.

Abusi
Member
8
10 days ago

Insurance sector should be made compulsory for some organizations. Although I’m not sure of MDAs because they are not yet big in the businesses. We need to embrace the culture of insurance.

Member
8
10 days ago

The insurance industry in Nigeria is seen as both one of the most stable and one of the most rapidly growing economic sectors in the country.

Member
8
10 days ago

Contributing significantly to the real GDP sustainability of the economy, the business has also provided relief to policyholders who were victims of various unlucky accidents.

Last edited 10 days ago by Adesanyaj72
Member
8
10 days ago

The National Association of Insurance Commissioners (NAICOM) has expressed optimism over the year 2023, adding that the business is growing and that this expansion must be maintained in order to develop a robust insurance market.

Member
8
10 days ago

Not only would insane policies put the efforts in jeopardy, but they would also give everything an impression of being immature.

Member
8
10 days ago

Any contractor that is interested in receiving business from either the public or private sector ought to be compelled to manufacture the majority of the obligatory insurance products.

Member
8
10 days ago

It has come to light that a lot of hospitals, doctors, and other types of healthcare providers don’t take it as seriously as they should.

Member
9
10 days ago

Insurance is compulsory for MDAs and others. Insurance is by choice, If you want You can decide yes or no on insurance is not necessary to make it compulsory

Member
8
10 days ago

Am really impressed with the growth and contribution of the insurance sector so far. Such a proven sector needs more developmental initiatives to make it progress and expand more.

Member
8
10 days ago

The federal government to make sure that all of its (MDAs) obtain insurance as and when required, both for their physical properties and for their lives as they are supposed to do.

Member
8
10 days ago

Insurance should be compulsory is a good idea it show how develop we are moving toward we need to be practicing insurance policy it will really help in protecting our property

Member
8
9 days ago

It is well acknowledged that the insurance business in Nigeria is not only one of the most secure but also one of the most dynamically expanding economic subsectors in the country.

Member
8
9 days ago

Am incredibly blown away with the development and contribution made by the insurance industry to this point. In order for such a proven industry to continue to improve and flourish, additional innovative activities are required.

Member
8
9 days ago

Some organizations should require insurance. MDAs are still small in business, therefore I’m unsure.

Last edited 9 days ago by Christiana
Member
8
9 days ago

Insurance sector is a major financial institution in any part of the world and they help to drive the economy. Here at home in Nigeria we need more education about Insurance because a lot of people always think it is all death and get the benefits when it comes to life insurance.

Member
8
9 days ago

In developed nations of the world, insurance play a vital role in their economy. Every Nigerian need to get the understanding of the importance of Insurance in our day is day activities. Therefore, it should be made compulsory for all Madam and other to insure life and properties.

Member
8
9 days ago

Before the second quarter of the year, when the next administration will take office, stakeholders in the industry have pleaded with the Buhari-led administration to stop the economy from slipping into an irreversible coma.

Member
8
8 days ago

Without a strong force, policies and directions would be detrimental to efforts.
He believed that issuing policies, laws, and directions without a corresponding power of enforcement would not only imperil the efforts but also give everything a childish air.

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