The Nigerian Insurers Association (NIA) has assured all stakeholders that there is no need for a bail out fund for the insurance sector. In fact, the insurance sector remains rock solid to continue to provide the needed insurance protection for individuals and corporate entities including multinationals and conglomerates.
Chairman of the Association, Mr. Wole Oshin had restated this fact at the NCRIB Annual General Meeting when he said insurance companies should not be compared with banksÂ in terms of exposure to credit risks. This is contrary to reports suggesting that the NIA chairman is canvassingÂ Â for a bail out fund for insurance companies as the Central Bank has done toÂ some banks.
The Associationâ€™s position further reinforces the recent statement by the Commissioner for Insurance, Mr. Fola Daniel, that the insurance sector does not need a bail out fund as there was no sign of distress.
According to the Director-General of the Association, Mr. Ezekiel O. Chiejina, the Association is confident that the insurance sector will continue to grow from strength to strength in the years ahead.
â€œWe are particularly happy that despite the magnitude and intensity of the crisis, no insurance company in Nigeria or elsewhere has gone under. To talk of a bail out fund now that the global economy has started showing signs of speedyÂ Â recovery is to say the least, absurd,â€ he added
â€œThese sponsored attacks and misguided reports are all intended to create a false sense of depression in the insurance sector. We are convinced that the insurance sector is not in any kind of depression and no amount of campaign of calumny can distract the present leadership of the Association from its efforts to build a credible, virile, and strong insurance industry,â€Â Chiejina insisted.