Market Development: NAICOM to establish 20 branches
As part of the strategic plans by the National Insurance Commission (NAICOM), to expand insurance market and increase acceptance in Nigeria, the Commission has concluded arrangement to increase its branch network from five to twenty-five.
The establishment of additional twenty new branches, according to NAICOM, is to ensure the presence of the Commission in all the six geo-political zones of the country.
Presently the commission is in the following part of the country – Lagos, Enugu, Kano, Ilorin, Port Harcourt and Kaduna.
In his presentation titled “Market Development Initiatives of NAICOM and The Role of the Media,” at a recent industry’s event, Head, Market Development, Adeyemi Abubakar, said the aim of the industry’s Market Development strategy is to create positive image in the minds of the insuring public; create the needed awareness of the benefits of insurance to the public; ensure enhanced penetration rate and contribution to gross domestic product (GDP).
This situational analysis, he stated, culminated in identification of the Commission’s strategic goals aimed at consolidating on the milestones achieved and to move the industry to greater heights.
The strategic goals identified include safety and soundness of Insurance institution; stability of the insurance sector; optimal insurance market development; adequate protection of policyholders and public interest; trust and confidence in the Commission; regulatory effectiveness and prompt payment of claims.
Other strategic goals are to carry out sensitization and awareness programs of NAICOM functions and Insurance business to the general public within the states in order to build confidence and promote public understanding of insurance mechanism.
Abubakar explained that effective consumer protection and education will build consumer trust and confidence, consumer trust builds market growth, insurance market growth generates savings, investment and employment while prompt claims payment will promote public confidence, adding that the development of insurance education across board will promote public understanding of insurance mechanism as well as ensure enforcement of compulsory insurance in collaboration with state government, the relevant Ministries and Agencies that are responsible for the implementation.
The very low acceptance of Insurance Institutions in Nigeria today, according to Abubakar, is largely due to ignorance on the part of the consumers and the general public. This is further aggravated by sheer lack of special purpose machinery for the continuous enlightenment campaign to the members of the general public.
In view of the above, The strategic initiatives for Insurance Market Development were considered in line with the Commission laws, mandates and responsibilities.
