By Bisi Bamishe
As the dwindling economy takes toll on various sectors, the insurance industry is prepared to give necessary backings to businesses.
The Chairman of Nigerian lnsurers Association (NIA), Olusegun Omosehin made this known during an interactive session with the press in Lagos.
He said, “We are prepared as a sector to weather the storm and give necessary backings to businesses, institutions and individuals.
Meanwhile, the removal of fuel subsidy and increase in fuel price have taken toll on insurance business as motorists reduced the number of vehicles on roads and the number of vehicle particulars they renew.
It would be recalled that the regulatory body of the risk bearing industry, the National Insurance Commission (NAICOM) had 200 per cent upward review of premium on compulsory Third- Party Motor Insurance Policy, from N5000 to N15,000 in January 2023,
According to Omosehin, the industry witnessed a drop in the number of patronage disclosing that, the number of vehicles uploaded in 2023 on the Nigerian Insurance Industry Database (NIID) stood at 3.11 million, as against 3.69 million recorded in 2022.
Omosehin said that government policies such as fuel subsidy and upward review of premium on compulsory Motor Third Party insurance, compelled many Nigerians to restrict themselves on the number of vehicles they put on the road as well as number of vehicle particulars they renew between last year and this year.
“Due to the removal of fuel subsidy and increase in fuel price, many Nigerians reduced the number of vehicles they put on the road and the number of vehicle particulars they renew.The industry observed this in the number of motor insurance certificates uploaded on the NIID,” he said.
However, NIA chairman expressed optimism that the economy would bounce back, adding that insurers would continue to cooperate with and support the government to improve the economy.
Speaking on insurance cover for kidnapping which is threatening the nation’s economy, he explained that there is an established market for kidnap and ransom worldwide, but it is a very small market with strict guidelines for the public to take up the policy.
According to him, the condition for insurance cover on kidnap is made stringent and not available on the shelves, so that people will not make mockery of insurance.
“Due to the nature of kidnapping, especially in our clime, it is not an insurance policy that can be displayed on the shelves, but there are underwriters that are writing the policy through the backing of specialised re-insurance.”
