By Franklin Alli

UNION Assurance Co. Ltd, a subsidiary of Union Bank of Nigeria PLC, has lauded National Insurance Commission (NAICOM) for its Market Development Restructuring(MDR) initiatives, saying it will boost insurance penetration and up income generation for insurers in the country.

The company is also set to roll out products specifically designed for SMEs during its soon to be commissioned 10-storey corporate building in Lagos.

Deputy General Manager, Operations, Frank Obadiuno, who disclosed these during an interactive session with the media at the just ended annual trade fair in Lagos, said that the industry regulator’s MDR policy was a step in the right direction as it would ginger operators to creatively explore other means to increase market penetrations by developing innovative products and services.

According to him, spurred by the MDR initiative, “we have set up SMEs Unit, to come up with a well thought out products that are tailored to the needs of SMEs, we have actually developed products that are meant to cater to their needs in view of the facts that they lack collaterals to access credit facilities from banks.

Giving insight into the company’s growth plans for the next five years (2010-2014), he said: “As at this year, by industry rating, so far, we have done well, there are 49 insurance companies in this country as at last year.  And out of 49,  we are currently occupying 17th position in the sector.  In the next five years, this company will be No.5 by industry ranking.”

“ The fact that we are 17th position in just 12 years of our existence, it meant that we are moving ahead as ones of leading player in the industry, and we are not stopping at that.”

On how they would achieve the projection, he stated: “Apart from leveraging on the strength of our parent’s company,  a lot of structures have been put in place that will ensure that our leadership status is sustained.

We have put in place processes that would ensures that our services can be assess at the touch of a button; we have put in place a team of committed marketers and human capital development so that they can deliver results…and we have restructured our operations to cover areas like agriculture insurance, micro credit insurance.  We have deployed good ICT system, and we are going to spread branch networks.”

Meanwhile, for the first time in twelve years, Union Assurance split pavilion from its parent company at the trade fair.
Vanguard gathered that the decision by the subsidiary company to have its own pavilion was to make its presence and products more visible to the trade fair community, asserting: “We mean business.”

“Participating in trade fair has been a very interesting experience over the years.  If it has not been interesting, we would not have thought of branching out , in order words, if you tasted something and it’s good, you want to taste it more.   That is why we decided to stand alone by telling the public who we are, not minding the fact that we are a part of the bigger group.”