INSURERS DEMAND ENFORCEMENT OF INSURANCE LAWS
For the insurance industry in Nigeria to thrive, appropriate insurance laws must be enforced, Chairman of the Nigerian Insurers Association (NIA) Olusola Ladipo-Ajayi, has said.
He told newsmen in Lagos that insurance practice in Nigeria will require the enforcement of laws for it grow. He noted that the pensions industry has been able to accumulate this much funds because of the law that compel the public to comply with the Pension Reform Acts.
According to the National Insurance Commission (NAICOM), insurance contribution to Nigeria's GDP is at an abysmal 0.72 percent per annum.
Its net premium is N97 billion while total gross premium is N156 billion.
This performance, industry experts agree is a far cry from what the industry is capable of generating. Though, NAICOM targets N1.1 trillion gross premium through enforcement of compulsory insurance, the target may not be achieved in 2013, the projected date.
Mr. Ajayi is of the opinion that based on Nigerians' disposition to insurance, 'if you don't enforce the compulsory insurances, they wouldn't buy.'
He also noted that the industry's developmental problems can be attributed to breach of prompt premiums' payment by government and individuals.
Ladipo-Ajayi, also traced the industry's problems to the high level of unethical practices by operators.