By Cynthia Alo
The National Insurance Commission, NAICOM, has said that there is need for Nigerians to embrace insurance as a form of risk management mechanism in the election periods.
Commissioner for Insurance, Alhaji Mohammed Kari who stated this, noted that more insurance protection should prevail during electioneering year in the country as the period is characterized by uncertainties.
Speaking in Lagos at a public lecture organized by Peninscope with theme, ‘Role of pension and insurance in the economy in an election year’, Kari said that as the nation moves into the election period, it could experience instability. Due to the characteristics of uncertainty during the period, there is need for insurance to be embraced more.
Kari who was represented by the Director, Inspectorate of NAICOM, Mr. Barineka Thompson said, “Insurance industry like other components of the financial system is changing in response to a wide range of social and global economic forces. Similarly, insurance supervisory systems and practices must be continually upgraded to grow with this development and particularly in the election period that we have.”
According to him, insurance industry plays a crucial role in sustaining any economy and as such should be appreciated and embraced by all adding, “More than N115 billion worth of net claims were paid in 2017 and so far we have had over N138 billion claims paid so far in 2018.
Also speaking Managing Director, Sterling Assurance Limited, Dr. Fatai Lawal who was represented by the acting General Manager Marketing, Mr. Sam Olabanji said, “The election year is characterized with violence, slow passage of certain reforms, political party prostitution and so on. And all these bring about uncertainty in the political and economic life of a nation. The question of whether to spend or not to spend lurks in the minds of business owners and even individuals. Insurance proffers some solutions to these aforementioned risks.”
However, he suggested that the insurance policies suitable during election year includes, fire & burglary insurance, house holder insurance, comprehensive motor insurance, business interruption ,life insurance covers (endowment and investment policies) and annuity among others.
Commenting on the development, Mr. Supo Falana, Managing Director, Glanvills Enthoven Insurance Brokers, called for an innovative way to include a greater number of Nigerians into the sector noting that this could be done through creating creative products.
Also speaking, Managing Director, Crusader Sterling Pensions, Mr. Niyi Falade noted that insurance should be geared up towards the election year because the period is heavily characterised by losses in the investment portfolio.