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Govt, Regulators Have Role To Play In Making Insurance Nigerians’ Common Right- Elumelu

 

The Chairman, United Bank of Africa (UBA) Group,Tony Elumelu, has said regulators and the government have critical role to play in makin insurance a common right of every Nigerian citizen.

Elumelu lamented that Nigeria with over 200 million people could not have majority of the citizens insured.

He made this assertions on Monday while delivering a Keynote adddress at the National Insurance Commission (NAICOM) in Abuja.

Speaking on the theme: Redefining Safety, Insurance Solutions for Public Buildings and Buildings under Construction, Elumelu said in a society where people are not insured they would be exposed to financial uncertainties that not only affect them, but their families and communities.

” Our regulators and the government have a critical role to play in making insurance a common right of every Nigerian citizen.

” It is embarrassing that Nigeria has less than 2% insurance penetration, in a nation of over 200 million people, struggling to survive, amidst the harshest economic realities.

” In a society where people are not insured, they are exposed to financial uncertainties that not only affect them, but their families and communities. It is a huge break on our common growth, Ladies and Gentlemen.

” Thus, we must re-assess and eliminate the stifling policies, roadblocks, and complacency in the insurance system, to encourage innovation and provide our people with simple and accessible insurance, not as an option, but as a fundamental right to secure their future. All within a regulatory framework that serves both clients and grows our industry”, said Elumelu.

For the transformation of the Insurance sector, Elumelu suggested an increase in the capital base of Insurance Companies to N20Billion for Life and N30Billion for Non-life.

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He called for the review of the dichotomy in Insurance authorisations/licences between life and non-life, adding ” Consolidated operators should have N50Billion. Let us use regulation to shape behaviour and enforce compliance”.

” NAICOM should focus on substance and things that will shape the sector and stop approving adverts. Use that time for more important aspects of regulation and save taxpayers money for more catalytic actions.

“All insurers should mandatorily contribute 0.5% of total revenue to drive industry awareness for 5 years. NIA should administer this professionally. Insurance Brokers capital base should be increased to N1Billion.

” NAICOM should allow brilliant minds to come into the insurance sector and limit years of experience only to technical areas. Let us open the insurance sector in Nigeria to our young and innovative minds”, said Elumelu.

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