The National Insurance Commission, NAICOM, has been accused of not doing enough to engage other law enforcement agencies and security outfits in its drive to increase insurance penetration through the Market Development and Restructuring Initiative, MDRI.

The Regional Manager, Law Union & Rock Insurance Plc, Mr. A. Falade, who made the assertion, stated that the regulatory body should do more to engage such outfits like the Nigerian fire brigade, Nigerian police, and the Federal Road Safety Corps, to increase insurance penetration in the country.

Falade stated that for the MDRI to work, NAICOM should regularly engage these law enforcement agents and security outfits in various awareness campaigns and stop relying on its own agents alone.

He said, “NAICOM wants to stamp out fake insurers in the country and have not engaged the law enforcement agents to enlighten them on what constitute fake or real insurance certificates. The policeman on the street does not know fake or real insurance paper, so how does he apprehend people with fake certificates?”

He argued that NAICOM needs to regularly train these people to get the best because if they continued doing the same thing, they will keep getting the same old result.

The concept of MDRI is based on the development of the market through enforcement of compulsory insurances; restructuring of the system through a review of the channels of distribution as well as the elimination of fake insurances. The policy is also meant to build consumers confidence in the Nigerian insurance market; promote public understanding of the insurance mechanism; increase the penetration from six per cent to 30 per cent by the year 2012, as well as grow the nations insurance density.

Others include enhancing the citizens’ access to relevant and affordable insurance products; as well as reducing the potentials for insurance firms to be used for financial crimes.

Aside from engaging these other agencies, some experts are of the view that the government has a big role to play if the insurance sector must grow.

The Group Managing Director of Royal Exchange Insurance Plc, Mr. Chike Mokwunye, said that the government needs to lend its support towards the growth of insurance in the country and assist it in deepening the retail end of the market because it is important to the nation.

According to him, “The government should assist the insurance industry to develop the retail market because developing retail end takes time but with government’s support, it will be achieved.”

Mr. Wole Oshin, Managing Director of Custodian & Allied Insurance Plc, stated that the government needs to recognise insurance as is obtainable in other economies where governments pick on insurance for progress.

He said, “Unfortunately government in Nigeria doesn’t even know insurance. This is a country where budgets are discussed and the insurance industry is not even invited. This goes to show that government does not understand the importance of insurance to the country.”