PRESS CONFERENCE BY THE CHAIRMAN OF NIGERIAN INSURERS ASSOCIATION, MR. OLUSEGUN OMOSEHIN ON THURSDAY, 26 JANUARY 2023 AT INSURERS HOUSE, 42, SAKA TINUBU STREET, V.I. LAGOS.
Good afternoon gentlemen of the Press and Happy New Year.
I warmly welcome you all to this Press briefing and interactive session – the first since my investiture in November last year.
Let me thank you for your continued support to the Association and the Insurance Industry through your reportage of activities, trends, and developments in your various media. Our industry is still work in progress and we will continue to partner with you until the industry takes its rightful place in the national economic space.
Permit me to highlight a few issues that have engaged the attention of the leadership of our Association in the last few months.
1. NAICOM CIRCULAR ON NEW PREMIUM RATES FOR MOTOR INSURANCE
As you are all aware, the insurance industry regulator, NAICOM, released the above circular on Thursday, 22 December 2022 pursuant to its powers under the NAICOM Act 1997 and other extant laws.
The new rates contained in the circular which takes effect from 1st January 2023 are as follows:
S/N CLASS TYPES NEW TTPD LIMIT NEW PREMIUM
1 Private Private Motor N3,000,000 N15,000
Own Goods N5,000,000 N20,000
Staff Bus N3,000,000 N20,000
2. Commercial Trucks/General Cartage N5,000,000 N100,000
Special Types N3,000,000 N20,000
Tricycle N2,000,000 N5,000
Motorcycle N1,000,000 N3,000
According to the Circular, comprehensive motor insurance policy premium rate shall not be less than 5% of the sum insured after all rebates/ discounts.
The Association is in full support of the new premium rates released by NAICOM and has indeed taken steps to ensure that members comply and join in the publicity initiatives that will follow shortly. The Association is embarking on stakeholder engagement as a first layer interface with the critical stakeholders to ensure their buy in and support.
We do not need to restate the issues with enforcement of the old rates, but we are confident that with your usual support and the understanding of the Nigerian public, Nigerians will support the new rates and this will not only lead to increase in premium income for underwriters but also increase in claims payment to the clients.
It is important at this juncture to point out that Ecowas Risk (risk arising from travelers from West African countries) other is covered under the new premium rates.
2. CONSOLIDATED INSURANCE BILL 2020
The process for reviewing the Insurance Act 2003 has been ongoing since year 2020 when the Consolidated Insurance Bill was proposed.
Since then, we have been following through with all the processes and I am indeed delighted to inform you the Bill has been passed. It is currently going through the remaining legislative procedures preparatory to the Presidential accent.
We are hopeful that it will receive speedy attention so that the industry can begin to tap into the opportunities provided by the new law.
3. TENURE LIMIT FOR CHIEF EXECUTIVE OFFICERS EXECUTIVE
AND DIRECTORS OF FINANCIAL INSTITUTIONS
Before the end of last year, we also received a circular from NAICOM prescribing tenure limit for Chief Executive Officers of insurance and reinsurance institutions.
The Council is engaging the National Insurance Commission on areas of concern.
4. HOSTING OF WAICA EDUCATIONAL CONFERENCE
The Nigerian insurance market will host the next WAICA Educational Conference in May and as usual with conferences of this nature, we expect participants from other West African Countries.
We need your maximum support to host a successful conference and look forward to hosting the most successful conference in recent time.
5. RELATIONSHIP WITH OTHER ARMS
Gentlemen of the Press, you will recall that during my investiture ceremony, I unfolded the theme of my tenure which is: Expanding the frontiers of Insurance through Partnerships and Stakeholders’ Engagement.
In furtherance of the above, the Governing Council has scaled up engagement with other arms of the industry to discuss issues of mutual concern. The Joint NIA/ NCRIB Technical Committee has been meeting on technical issues that affect brokers and underwriters and it is our hope and expectation that these engagements will further cement the already existing cordial relationship between the two bodies.
Gentlemen of the press, please recall that I had earlier promised to make this interaction very brief. I thank you for your time and wish you the best in your endeavours.