By ROSEMARY ONUOHA

Despite efforts by the National Insurance Commission, NAICOM, to deepen insurance penetration in the country, through its Market Development and Restructuring Initiative, MDRI, underwriters are still not embracing retail insurance.

Managing Director, Riskguard Africa Nigeria Limited, Mr. Yemi Soladoye, who disclosed this, said that in spite of the success of the MDRI, more companies are yet to embrace retail marketing, which remains one of the panaceas to the industry’s growth.

Soladoye, who stated this in a chat with insurance journalists in Lagos said, “The insurance companies feel that retail system is not the area they want to adopt, despite the fact that the regulator  has put in place for them a lot of incentives to make them go into agency recruitment. Note that NAICOM does not have underwriting license neither does it have brokering license.

According to Soladoye, the MDRI is a turning point in insurance practice in the country, because operators, regulators, support service providers, journalists and government, now realise the fact that there is something going on in the industry.

Soladoye said that prior to the introduction of the MDRI, operators were leading the industry, but with the initiative, the fear of the regulator is now the beginning of underwriting wisdom.

He said, “MDRI is also a turning point because it is from that stage we saw the regulator leading the market. There is a united focus for all of us. Whether you adopt it or not, we all know that there is a project on ground and there is a destination to reach and there is a direction as to the way we can go for us to secure increased penetration for insurance business in this country.

“The initiative is a watershed in the history of the industry and it is also an evergreen thing. You cannot wish it away, as it has brought about many developments. When you read the strategy document, you would see that micro-insurance is part of the area recommended where the industry will get development.

“Takaful is also an aspect of the initiative. As MDRI is targeted at restructuring, therefore, all the restructuring that are happening in the market are embedded within the programme.”

Soladoye, however, lauded the efforts of the Commissioner for Insurance, Mr. Fola Daniel, stating that prior to his appointment, the best the industry had on premium income was 24 per cent increase, now it has increased to 36 per cent.

He said that the industry results in the past five years since the Commissioner has been in position, is an indication that the industry will meet its MDRI projections of a trillion gross premium income.

According to him, with the industry’s projection, by the time all the insurance companies that are engaging agents fully commence operations, there will be tremendous increase. By December 2009, NAICOM recorded about 1695 registered agents with different insurance companies, however, by December 2010, the number increased to 3404, which was about 2000 increment, Soladoye said.