By Rosemary Onuoha

The National Insurance Commission, NAICOM, has decried the obsolete nature of some sections of the laws governing insurance practice in Nigeria and hence called for an urgent amendment.

According to NAICOM, it is important that the bill to amend the insurance laws be given accelerated hearing when it is brought before the National Assembly. Acting Commissioner for Insurance, Mr. Sunday Thomas disclosed this in  Uyo, Akwa Ibom, at a retreat for members of the House Committee on Insurance and Actuarial matters recently.

Thomas said, “NAICOM as a statutory regulatory agency derives its powers from the National Insurance Commission Act 1997 and the Insurance Act of 2003 to primarily oversee insurance practice in Nigeria. The fact is that some of the provisions of these laws are fast becoming obsolete and thus require urgent amendments.

“It is imperative to note here that a bill to amend the insurance laws has been in the works for some years now, we are, however, optimistic that when the bill is eventually presented to the 9th Assembly, it will enjoy accelerated attention.”

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Highlighting efforts of the regulatory body to boost insurance penetration, Thomas said: “The commission over the years in the course of discharging its duties and keeping to its mandate, had incepted a number of initiatives, especially in the area of market development to boost insurance penetration and growth.

“While a lot has been achieved by the commission in this regard, there is a lot to be done if we must attain the desired goals as an industry.”

Acknowledging incidences of delays in the payment of claims by some operators, he averred that, “the commission is, however, addressing such cases as soon as they are brought to our notice.

“It is for this reason that NAICOM has strengthened its Complaint Bureau Unit in order to effectively address consumers’ complaints within the shortest possible time.”

Thomas said that the commission has also as a matter of deliberate policy adjusted its strategy to focus more on developmental issues than compliance issues going forward in the overall interest of all stakeholders.

He said, “NAICOM had in 2019 initiated the process to recapitalise the insurance industry in order to upscale its financial standing to meet up with current economic realities and avoid imminent systemic collapse and solvency crisis in the insurance sector.

“This will ensure that the industry becomes more robust in its technical competence and financial base, build confidence, trust and enhance market value. It is further aimed at repositioning the sector for self-actualization in terms of growth and development. The process is expected to be concluded by December 31.”

Vanguard