By ROSEMARY ONOUHA
Insurance companies need a relief in form of intervention fund from the government to enable them underwrite terrorism, kidnapping and other emerging risks, the President Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, has said.
Adetimehin who disclosed this at a media parley in Lagos said that the intervention fund has become necessary due to the devastating and very catastrophic nature of such risks.
He noted that some insurance companies are working on how to evolve suitable packages for such risks, and that the operators are robbing minds with experts abroad on how such risks can be effectively covered.
He said, “By our roles and responsibilities under our Charter, we should be seen at all time packaging the right curriculum and developing programmes for all stakeholders. Also our global exchange programmes have always focused on these areas.
“I remember when we were in South Africa, we had brain storming sessions and in that particular entourage, we had a reasonable number of insurance executives. We had solid sessions, met with companies on underwriting of terrorism, kidnapping and other political risks.
“I want to believe that quite a number of the companies must be working on evolving suitable packages. I had at different fora, canvassed the need for government’s provision of intervention fund. This is because some of these risks, if they become reality, their effects will be devastating and very catastrophic and the only way at the formative stage is for government to come up with a type of intervention fund that will provide relief to insurance companies’ stakeholders that will be willing to underwrite these kinds of risks.
“I can tell you that we are not relenting on our efforts, and we are not relying only on our own local capacity, we are robbing minds with experts beyond our shores.”
He noted that unique products would be evolved to carter for the emerging risks, stressing that operators would continue to collaborate to provide suitable cover for the public.
Meanwhile, Adetimehin revealed that stakeholders in the insurance industry have all embraced the proposed consultative committee even as the Commissioner for Insurance, Mr. Fola Daniel has endorsed the initiative which is aimed at uniting and promoting common interest of the industry.
According to Adetimehin, the name, Insurance Industry Consultative Committee (IICC), has been adopted by all stakeholders, stressing that the committee would stem the present independent ways of sorting issues in the industry.
He said the committee would be made up of executives of the various arms, which would before coming to meetings, meet with their members and table issues bothering on their operations and practice, and present same to the committee to be chaired by the Commissioner for Insurance.
He said, “The executives of the various arms have met to reappraise the modalities, objective, constitution of membership, regularity of frequency of meetings, chairmanship of the body, administration of the body, who qualifies to be a member of the committee, and all these have been peacefully resolved and conveyed to the Commissioner who endorsed the initiative.