NAICOM Enforces Compulsory Insurance In All States

Due to the concentration of insurance businesses in the major cities of Nigeria, the commissioner for insurance: Alhaji Mohammed Kari, during a retreat held by the Nigerian council of registered insurance Brokers (NCRIB) in Osun State said the commission is extending the enforcement of compulsory insurance to all the states.

This statement was made while speaking on the commission’s effort in addressing the problem of low insurance penetration in the country.

In his words “ while the newly formed insurers committees has set up various sub-committees to look at that and more issues, the commission is complementing its efforts by expanding its enforcement of compulsory insurance down to the state level. The task of market development is everybody’s; however, it is the trend to quiz the regulator why market penetration is low. Penetration will continue to be low if everyone would only operate from the comfort zone of the metropolis or chase only existing clients with insurance policies.”

He also stated that the insurance market has grown rapidly and insurance activities has grown over the years but he lamented that the increase in the number of players, especially brokers has yet to reflect on the level of insurance penetration in the country

He quipped that the brokers and underwriters should be on the alert as it is ready to apprehend companies and individuals involved in illegal activities. The commissioner did not fail to add that the insurance industry incur losses due to the activities of fake operators.