Are You Covered? Surge on Fake Insurance Bandwagon

Julius Raja Pillai

The insurance industry has long been perceived to be steeped in tradition and driven by conservative business values. Consumers have always viewed the process of engaging with insurance companies as bureaucratic, time-consuming, and tedious. However, insurance is a pervasive part of our lives, almost on a daily basis.

Today, customers have wholeheartedly adopted digitally-driven business channels and the insurance industry finds itself in the midst of this digital storm. New products are being built and distributed, purely on the basis of data and analytics. The new players in the insurance space are using digital-only business models, making it easier and quicker for their customers to consume insurance products and services.

Traditional insurance providers need to understand that the use of digital technologies does not lead to the complete overhaul of their business operations. Instead, such technologies focus on the enhancement of the insurance value chain. Even though large insurance companies have understood the need for digital transformation and would like to initiate such change, they still find it challenging to identify the apt areas within their business that are ripe for transformation.

Trends That Drive RIFAN

More than 90% of insurance CEOs emphasize the importance of data in understanding customer needs and making enterprise-risk related decisions, yet only 10% believe that the data they receive is comprehensive. This is a clear indicator of how the harnessing of data through technology is crucial to the future of the insurance industry.

Data is at the heart of innovation in any industry, especially in insurance, as the amount of customer data being generated is huge. Also, it is a balancing act for insurers, as insurtech-led transformation is not just about changes in technology, but also altering their existing business models.

The trends mentioned below focus on customer satisfaction and retention, leveraging of customer data to obtain precise market insights, application of AI and machine learning across the insurance value chain, automation of insurance platforms, and much more.

  • Business Process Transformation: Traditional insurance companies must prepare for the future right away by innovating digitally. Else, they might find their business being eroded by early adopters of digital technologies and insurtech startups. The digital transformation of insurance processes is holistic in nature, as the complete business model has to be changed, instead of piece by piece. Insurers must have a digitally driven, customer-centric business strategy in place.In terms of technology, the focus will be on API or microservices architecture, which will enable insurers to find a way to work with transactional legacy systems such as RIFAN, as well as permit interconnectivity with other systems. RPA can also be deployed to enhance customer interaction and data harvesting.To achieve the goal of complete business process transformation, insurers must first clearly define their business processes, identify the issues that have to be resolved, and determine the opportunities that can be exploited. This will then establish what needs to be removed, automated, outsourced, and the technology solutions that provide the best possible ROI.
  • User-driven Ecosystems: Customers today are looking for an integrated user experience that provides access to a set of interconnected products and services. Placing the customer at the crux of digital initiatives can help insurers rapidly scale adoption of their products and services and acquire previously unheard value.Ecosystems can help users manage and access different products and services, without having to switch between different portals, handle different login credentials, or waste time maintaining various applications. Insurers have the potential to engage and partner with players within and outside of their domain to effectively connect and engage across a much broader user base.For example, Progressive corporation has partnered with Zubie, a GPS fleet tracking system for businesses, to provide customers with insights into how their driving habits might impact their insurance premiums. Insurance companies that have adaptability as an integral part of their product design and business strategy will be able to fully exploit the benefits of a digital ecosystem.
  • AI and Machine Learning: Insurers need to collaborate with insurtech service providers to take advantage of the benefits that AI and Machine Learning can bring to their business. These technologies can simplify customer onboarding and greatly improve customer service. For example, insurance used to depend on statistical sampling to build risk pools. Now, IoT sensors allow insurers to base their coverage price on real events through data obtained from individuals, rather than group data samples.AI can also be leveraged to completely transform critical insurance functions, such as fraud detection, underwriting, insurance premium pricing, and much more. AI generates a huge amount of data, which can be used to obtain more customer insights and subsequently insurers can convert these insights into actions.Insurers can identify and bridge gaps in data, processes, product, and customer interaction through the application of AI/MI and other allied technologies.

Insurtech is bravely moving forward, with or without you

Insurtech is no longer an afterthought, but the central driving force of digital transformation in the insurance industry. However, such a transformation and adoption of new technologies will not be successful without a paradigm shift in how the insurance industry works. Long-term business sustainability will be in question, if insurers fail to adopt a digital-first approach. It is important for insurers to think beyond the constrictions of their legacy systems to provide a customer-centric architecture. The path to digital transformation is not without its risks or bottlenecks, but the ultimate prize is worth the effort and time.FacebookTwitterLinkedInPinterestBack to blog 


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Technology and Innovation in the Insurance Sector

Technology and Innovation in the Insurance Sector

The technology will enable insurers across the country to efficiently enable predictive analysis

Technology and Innovation in the Insurance Sector

Image credit: shutterstockRahul AgarwalChief Technology Officer of Policybazaar.comSeptember 2, 2019

As the insurance industry is evolving, so are the customers. Insurers are constantly receiving ideas from all the corners, and thanks to technology. And this is impacting our consumer behaviour. The state of the insurance sector in our country is entirely different from that in other countries. Despite constant liberalization of the current insurance industry, a major part of the population still does not believe in any insurance. This is majorly because the many challenges associated with the sector including a split ecosystem, regulatory uncertainty, and disjointed data continue to remain specific.

Innovations Help 

With the constant advancements and better use of digital tools in the last few years; most of these challenges seem to be addressed efficiently. While technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), Blockchain, and Advanced Analytics are working as promoters to enhance the importance of insurance, the insurers are working hard to create a more streamlined and integrated insurance system.

Analytics is expected to play a great part in driving the insurance industry in the coming few months. The technology will enable insurers across the country to efficiently enable predictive analysis. Insurers can leverage analytics to make predictions about a person’s probability of getting an ailment and therefore, timely suggest him to take necessary precautions. This can be done by implementing intelligent health analytics to a patient’s medical history in order to predict the future health approach. The technology can even prove positive results for deciding the best course of action, in terms of identification of most effective treatments and drugs resulting in cost-efficient treatments.

Customers Have Changed 

Today’s tech-savvy customers look for digital tools and experience from their insurer at par with what they receive from any e-commerce or any other retail industry. While talking about the insurance industry, the consumers these days’ demand digitally-oriented applications or websites that provide complete customer support. Many insurers have already started adapting digital tools to make it easier for their customers and their family members to navigate the healthcare ecosystem. Some of the powerful features of the tools include digital on-boarding, ease of selecting plans based on cost and preferences, and personalized content for better understanding of the claims.

Yet another impressive trend that the insurance industry is witnessing is the introduction of ChatBots and Voice Assistant for enhanced and meaningful customer engagement. Both these technologies are gaining quick popularity amongst the insurers as well as the consumers. The technology specifically leverages Artificial Intelligence (AI) to simulate productive conversation with its users while delivering powerful customer engagement. One of the important reasons for the introduction of ChatBots and Voice Assistant in the insurance sector is the increasing aged population that demands continued care.

Fortunately, insurance service providers in India have now started moving towards a system of the preventive model of care. The model specifically aims at providing proactive wellness initiatives to the consumers while using IOT powered devices. Moreover, there is a high demand for personalized offerings in the market as customers are quite willing to adopt proactive, customized devices from their insurance providers. The initiative would involve real-time monitoring of a customer’s parameters for timely care interventions while promoting healthier lifestyles through wellness initiatives.

Developing Microinsurance in Nigeria

By Claudia Huber

Considering  Nigeria’s socio-economic particularities and that only about 1% of the adult population has insurance coverage, Nigeria’s development plan, “Vision 2020,” describes the country’s insurance sector as a huge and untapped opportunity.

Against this context, the National Insurance Commission (NAICOM), the regulatory body for insurance in Nigeria, approached the Access to Insurance Initiative, the partnership Making Finance Work for Africa (MFW4A) and GIZ to carry out a Microinsurance Country Diagnostic. The goal of the diagnostic process was to analyze the market, distill key opportunities and drivers and identify potential barriers and constraints for the development of a viable microinsurance market. The diagnostic is comprehensive and covers:

  • country-specific context factors, including political, macro and socioeconomic characteristics, as well as the country’s status quo on overall financial inclusion issues;
  • demand-side drivers, explored through focus group discussions;
  • supply-side drivers, including an analysis of different types of insurance providers, available products and their characteristics, and current and potential distribution channels; and
  • an in-depth look at the impact that the current policy and regulatory environment (including all relevant regulation, not just insurance regulation) has on microinsurance development.
A woman stands in a stall selling red peppers

A woman stands in a stall selling red peppers

Photo Credit:  Anjali Banthia

Importantly, the diagnostic approach focuses on catalyzing a local stakeholder process, bringing together all actors involved in the sector to discuss, prioritize, adopt, and implement strategies to support the development of insurance services for poor and low income people. While such a consultative approach has the advantage of assuring buy-in by the key actors and their commitment and readiness to implement changes right from the start, it also takes more time and continued interaction than a strict market analysis.

The Results of the Diagnostic in Nigeria

The diagnostic uncovered that key stakeholders in the insurance market generally perceived the low penetration of insurance coupled with the large and growing Nigerian population as a huge opportunity. Yet, knowledge about formal insurance among low-income people is generally weak, and especially in the rural areas, many have not even heard of the concept. As in many other countries, people who had interacted with insurance companies often had negative experiences and thus no longer trust them or do not recognize the value insurance can deliver. But focus group participants recognized the many risks they face, with their own or a family member’s illness or death, as well as accidents and fire being their main concerns.

Based on these findings, the diagnostic suggests that the top priority for creating an inclusive insurance sector in Nigeria is to improve public confidence, trust and awareness. Doing this requires investing in capacity building, innovative and cost-effective delivery channels, and alliances with partners that are close to poor and low income people. In a later stage, the diagnostic recommends awareness raising campaigns throughout the country; however, with a view of making sure relevant and high quality products are available for the target population.

For the supply side to develop to its full potential while assuring that (potential) clients are protected, an enabling regulatory framework is essential. The recent Landscape of Microinsurance in Africa 2012 study found that microinsurance-specific regulation does not seem to have pushed microinsurance development in Africa. However, the lack of it appears to have created uncertainty and hindered growth and expansion. An enabling policy and regulatory environment is essential to enable first movers to serve as catalysts, proving the viability and sustainability of the microinsurance business in Nigeria.

The analysis of the Nigerian regulatory framework recommended the creation of a dedicated microinsurance framework covering, and allowing for, a variety of organizations to offer microinsurance (e.g. traditional insurance companies as well as dedicated microinsurers). Such a regime requires strict but proportionate entry and on-going requirements, such as a lower minimum capital balanced by a limited scope of permitted activities, and an effective but highly efficient licensing and supervision process. This suggested approach for Nigeria is in line with the recommendations set forth in the Application Paper on Regulation and Supervision Supporting Inclusive Insurance Markets developed by the Microinsurance Network and the IAIS’s Joint Working Group on Regulation, Supervision, and Policy.

In late 2012, over 100 actors involved in the insurance sector in Nigeria joined a stakeholder workshop to discuss these and other issues emerging from the diagnostic. Following NAICOM’s adoption of the report as a working document for Nigeria, a steering committee comprised of all relevant stakeholders is planned to be set up with the mandate to design and implement an action plan.

Since then, NAICOM revised the Microinsurance Draft Guidelines which are about to be finalized and implemented. At the same time, guidelines around the payment of claims are being developed. In order to ensure adequate understanding and increase capacity among stakeholders, a series of workshops and seminars for stakeholders in the insurance industry have also been conducted. No single measure will bridge the insurance gap. Widening the reach of insurance services requires actions across many fronts, including the firm commitment of all stakeholders to build and implement a realistic plan of action. Besides NAICOM as a key actor, commercial insurers and development partners have important roles in this process.

If the three dimensions – supply, demand and policy/regulation/supervision – move toward a common objective, Nigeria will have made great strides toward providing basic and quality insurance to majority large share of its population.


MicroInsurance Ecosystem in Nigeria

Microinsurance is the protection of low-income people against specific perils in exchange for regular
premium payments proportionate to the likelihood and cost of the risk involved1
. It typically refers to
insurance services offered primarily to clients with low income and limited access to mainstream
insurance services and other means of effectively coping with risk.
Microinsurance in Nigeria is at a very early but growing phase. The EFInA Access to Financial Services
(A2F) in Nigeria 2016 survey highlighted that – of 96.4 million adults, only 0.3 million use Microinsurance
products. A further review of the survey findings suggested that while uptake is currently low, 32.1
million adults will be interested in using Microinsurance. This presents a significant opportunity for
Microinsurance operators to develop products that meet the needs of adult Nigerians.
The Insurance industry regulator, the National Insurance Commission (NAICOM) has released the
guidelines for Microinsurance operation in Nigeria, which establishes a uniform set of rules, regulations
and standards for the conduct of Microinsurance business in Nigeria with effect from January 1st 2018.
These are signs that the Nigerian Microinsurance sector is awakening and considering low-income
insurance distribution. The guidelines defined Microinsurance as insurance developed for low income
populations, with low valued policies provided by licensed institutions, run in accordance with generally
accepted insurance principles and funded by premiums. It explained that Microinsurance products are
insurance products that are designed to be appropriate for the low income market in relation to cost,
terms, coverage, and delivery mechanism. It also clarifies the scope of Microinsurance for the operators,
stating that the sum insured under a Microinsurance policy(ies) shall not be more than N2,000,000 per
person per insurer.
EFInA has commissioned this study to highlight the different Microinsurance players in Nigeria with an
aim to understanding the current Microinsurance network in Nigeria and opportunities to deepen the
uptake and usage of Microinsurance. The study also analyses the different distribution models for
Microinsurance in Nigeria and other landscapes, with a focus on the opportunities available in
leveraging the agent networks for the distribution of Microinsurance.
2.0 The Microinsurance Ecosystem – Focus on Nigeria
The key drivers of Microinsurance to reduce the vulnerability of low-income earners include appropriate
cover, simple and easily understood products, manageable premiums, suitable delivery channels and
convenient premium collection methods.
Microinsurance is very broad and it is pertinent that the Nigerian Microinsurance industry players have
full understanding of all the elements available in the sector to explore the different opportunities
available for Nigeria. These can be clarified in terms of:

Microinsurance Stakeholders: In different countries around the world, Microinsurance products
are generally developed and offered by commercial insurers, mutual funds, microfinance
institutions, NGOs, governments or semi-public bodies. Microinsurance ventures are often joint
efforts among several of these stakeholders, who can play roles ranging from market research and
product design to selling, delivering, and servicing claims.
 Microinsurance Products: Microinsurance products can cover any insurable risk, including death,
illness, accident, property damage, unemployment, crop failure, or loss of livestock. The
Microinsurance Guidelines for Nigeria further clarifies that the products/services risk, procedures
and coverage must be unambiguous and easily understood. Microinsurance products must be
affordable and accessible to the target market in terms of purchase, premium payments and
claims. The products or services shall be designed to meet the needs of clients, be beneficial, fair
in price and coverage.
 Microinsurance Portfolio size: Microinsurance can operate at any scale (from small to large), as a
microinsurer may cover dozens of policyholders or millions.
2.1 Microinsurance Stakeholders
Nigeria currently has 17 organisations with Microinsurance windows; however, they are required to
apply for a commercial licence to operate fully as Microinsurance providers in Nigeria. The scope of this
document is limited to Microinsurance stakeholders and their different roles which are highlighted in
the table below

What Are Compulsory Insurances

Compulsory Insurances are insurances made obligatory by legislation to provide protection to the third party and the general public. Most of these insurances are not as expensive as you think. For instance, you can purchase a Third Party Motor Insurance for as low as N5,000.00. Not all insurances are compulsory, but most of the compulsory ones are to compensate the general public for loss, death or bodily injury.Out of the mandatory insurances in Nigeria the following are the most prominent:Builders’ Liability Policy (The Insurance Act 2003/The Lagos State Building Control Law 2010)Occupiers’ Liability Policy (as above)Employers’ Liability Policy (Group Life)Employers’ Liability Policy (Workmen’s Compensation Act 1987 – Now repealed)Healthcare Professional Indemnity Policy (The NHIS Act 1999)Motor Third Party Liability Policy (The Insurance Act 2003)


Enforcing Compulsory Insurance


Courtesy: Leadership Newspapers

Insurance industry is losing a potential N1 trillion annually from low adoption of insurance by Nigerians, LEADERSHIP findings reveal.

And to recoup this money would demand effective enforcement of the five compulsory insurances in the country.

Market analysts believe insurance sector is capable of generating about N30 billion premium from each state of the federation if States can enforce , at least , the five compulsory Insurances, with the industry expected to gain about N1.1 trillion from such enforcement.

Moreover, while the private sector seems to fair better in insurance adoption than the public sector, market observers are calling for improved enforcement from regulatory and enforcement agencies to deepen insurance penetration in the country.

The five compulsory insurances are; Motor Vehicle (Third Party) Liability Insurance, Builders Liability Insurance (Buildings under construction), Occupiers Liability Insurance on Public Building, Healthcare Professional Liability Insurance and Group Life.

Challenges Facing Enforcement Of These Insurances

The current Insurance Act 2003, is so obsolete that insurance operators now resort to persuasion rather than compulsion for people to subscribe to insurance products and services, even as the legislations are not only weak but sometimes difficult to enforce.

A product that every citizen ought to have at least one, is now becoming a situation whereby you find maybe, two in every 1000 Nigerians being insured.

On the other hand, the industry’s regulator, that is, the National Insurance Commission(NAICOM) which ought to be the vanguard in ensuring implementation of the already existing insurances has its powers limited by the current guideline and the law enforcement agents could do barely nothing, while some of them have been compromised, even as some of these agencies are expecting funding from the insurance industry to enforce certain insurances.

The Managing Director/CEO, Blue Pearl Konsult Limited, Chief Chris Obi, while speaking at a forum in Lagos recently said, the situation of our laws, especially in insurance, has been stagnant for too long that both insurers and the insured do not feel fully protected.

‘Even the available laws are poorly enforced, so that there are no consequences for breaking insurance laws, especially by insurers. Rather than deepen insurance, people are scared and confined to only the needful,’ he pointed out.

Speaking at an event in Abuja recently, Principal Consultant, Mike O. Onyeka & Associates, Mr. Sam Onyeka, noted that he is particularly worried by the challenge posed by legal framework. By nature, he said, the extant legal framework for insurance business, the Insurance Act 2003 is prescriptive, meaning that the law does not allow the regulator to be innovative or make any changes without reference to the National Assembly.

The prescriptive legal framework, he stressed, is the main reason for low insurance penetration and sectorial growth in the country, stating that the challenge must be addressed with all the capacities the industry can muster.

Moreover, another challenge here is that Insurance Law is an Executive Law, which cannot be effective in States until it is domesticated in the laws through the State House of Assemblies.

Although, NAICOM has make moves to persuade States in this regards, Lagos and Ogun States have so far domesticated some insurances in their states, while there are moves by Gombe and Kaduna States to do the same.

With such domestication, it was learnt that government can now deploy the State apparatus to enforce the five compulsory insurances in the adopting states.

According to the Commissioner for Insurance, Alhaji Mohammed Kari, such domestication will allow government to deploy the state apparatus to enforce the five compulsory insurances in the adopting states.

State agencies such as; Environmental Sanitisation board, Revenue Generation Board, Fire Brigade, among others, he said, would be used to enforce Builders’ Liability Insurance, while the Federal Road Safety Corps(FRSC) and the States’ Vehicle Inspection Offices(VIOs), on the other hand, would be used to enforce Motor Insurance policies.

Initially, the the Federal Fire Services(FFS) and NAICOM had signed an agreement to use Fire Brigade in each state of the federation to enforce Builder’s Liability Insurance.

The aim is to seal buildings, filling stations, shops, among others, for non-insurance of those buildings, while the owners of such building would be sanctioned.

To make this enforcement effective, insurance companies are contributing to a pool to financially assist the Fire Service carry out their civic responsibilities.

However, since most states have yet to domesticate insurance law, it is becoming difficult to enforce.
Experts believe the reason for non-insurance of building under construction in the country was low enforcement.

The former Managing Director, Anchor Insurance Company Limited, Mr. Mayowa Adeduro, said, since insurance is in the subsidiary list in the country, insurance laws must be domesticated by states to make them effective, of which virtually all the states are yet to do.

Adeduro, who is now the Acting Managing Director, Law Union and Rock Insurance PLC, said: ‘The problem is that insurance is in the subsidiary list in the country and in that regard, it’s within the power of the Federal and the States to implement it. When Federal cannot force a state to implement a law, it means the state itself has to pass similar law by domesticating the Federal law in their own state so that they can implement. I think that is where we are having a major challenge.

‘But we will get to a level where we will be able to encourage all the states to pass semblance of Insurance Act in their various states. Lagos is taking the lead in this regard because they even have a Builders Liability Insurance domesticated in the state law.’

Enforcement of insurance laws of buildings, he said, should ordinarily be the work of the Fire Service, but that the agency is incapacitated by fund and manpower to do this.

‘Ideally, Federal Fire Service should be the one to implement insurance of buildings by going to public building and see that they have certificate of insurance. But they are hampered with lack of resources and amenities to do that,’ he pointed out.

He said insurance companies are collaborating with NAICOM to ensure that they allocate some fund to the fire service for prompt supervision of enforcement of building insurances.

He equally urged the remaining states, aside Lagos, to domesticate insurance laws, especially that of Builders Liability Insurance, saying, the rate at which buildings under construction are collapsing on a regular basis with lives lost and some injured, is a courtesy call on states to prosecute builders without the required insurance certificates.

‘Every state government suppose to have their own respective insurance laws embedded in their state laws because approval of a building is within the state parameter,’ he stressed.

Meanwhile, despite the influx of Okada into the country in the last few years, insurance companies have been unable to sell much of their products and services to these transporters as the owners refuse to buy insurance. Motorcycles and tricycles are covered under the Third Party Motor Insurance Act.

The reason for the continuous neglect of insurance cover by these transporters, findings show, is because the law enforcement agencies, such as; FRSC and Vehicle Inspection Officers (VIOs) are too lenient with motorcycle riders; they rather focus on vehicles for insurance enforcement.

With no enforcement, the riders do not care about having an insurance cover, especially as they are unaware of its benefits.

Regulatory Intervention In Group Life, Motor Insurances
Last year, insurance industry regulator issued a circular mandating operators to maintain the minimum rates on Third Party Motor Insurance and Group Life Insurance Coverage, a development that will increase the profit of underwriters in these lines of business.

This policy intervention is expected to earn the 27 Life insurance firms in the country about N135 billion premium income from group life insurance policy in the 2019 financial year.

NAICOM had earlier last year announced a new rate for group life insurance policy, which was a 300 per cent increase to the rate being charged in the market then.

Before then, most of the life offices in the country, LEADERSHIP learnt, were struggling for survival as the rate they were charging was not commensurate with the liabilities there-in, hence, shortchanging themselves, in a policy rate competition among Life operators struggling for the same businesses.

However, with the intervention of NAICOM and its determination to enforce this rate, Life operators are now heaving a sigh of relief, expecting things to change for the better starting from their 2018 financial year.

The insurance industry regulator had, in January 2018, mandated life insurers to comply with group life rate put at 6-8 per cent per mile, which was 300 per cent higher than the market rate.

And since life insurers generated a sum of N44.5 billion premium income from group life business in their 2017 financial year, market analysts expect the Life arm of the insurance industry to rake in N135 billion premium income, which is a 300 percentage growth, from group life in their 2019 financial accounts when the rate must have fully taken effect.

Speaking on this development, Group Managing Director, Cornerstone Insurance PLC, Mr. Ganiyu Musa, stressed that the single positive regulatory intervention that has had the most positive impact on the industry, is appropriate pricing of group life insurance cover and Motor insurance.

According to him, ‘the industry is going to benefit a lot in terms of improved premium growth if the right premium is charged on cover. Price rate competition is a major challenge in insurance industry and that is why I applaud the enforcement of ratings on group life and third party and that, to a large effect, will increase the premium income of the industry in the current year.’

With 6 per mile rate charged on group life, he said, this represents 200 to 300 per cent increase on the average rate being charged in insurance market, for the same level of exposure. To be able to more than double your price, for the same level of exposure, he stressed, can only be very good for the margin of the industry.

Explaining further, he said: ‘Mille is one thousand, so the mile is; for every 1000 of exposure, you charge a price of N6. So, it’s 0.6 per cent, which is 6 per mile.’

Before the intervention, he said, life insurance pricing has nosedived to unsustainable rate of about 1.5 to 2 per mile, and that some life insurance firms were nearing distress, stating that, it was a very timely intervention from the regulator to have insisted on the appropriate pricing.

Moreover, the regulator insisted that insurers must charged a minimum of N5,000 for Third Party Motor insurance coverage.

The Way Forward
Earlier, the Executive Secretary/CEO, Nigerian Council of Registered Insurance Brokers(NCRIB), Mr. Fatai Adegbenro, has charged federal, states and local governments to lead by example by insuring all their assets, including public building, to increase insurance penetration and profitability.

Corp Marshal, Federal Road Safety Corps(FRSC), Mr. Boboye Oyeyemi, said increasing insurance patronage, requires a joint commitment to a public-private partnership process that combines the development of a conducive enabling environment, the building of strong public institutions and programme, and a local private sector that has the capital and knowledge to successfully embed road safety in insurance products.



Who is NAICOM ?

NAICOM stands for National Insurance Commission

The National Insurance Commission (NAICOM) was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.

The Commissioner For Insurance

The Commissioner for Insurance is statutorily the Chief Executive of the Commission and is responsible for the execution of the policies of the Commission as formulated by the Board and the day-to-day administration of the Commission. His tenure is for a period of 4 years in the first instance and may be reappointed for a further 4 years and no more.

Operational Management

The Commission operates under three (3) different Divisions namely: Commissioner For Insurance’s Division, Technical Division and, the Finance & Administration Division. Each Division is headed by the Executive Management. Under the CFI’ Division are: Legal and Board Secretariat; Corporate Affairs; Audit; Procurement; Information Technology; Research, Statistics and Corporate Strategy directorate. Under the Technical Division headed by the DCT are: Inspectorate Directorate; Authorization & Policy Directorate, Supervision Directorate; Enforcement & Compliance Unit and, Complaint Bureau Unit. The Finance and Administration Division headed by the DCF&A comprises of Finance & Accounts; Administration & Human Resources and Servicom Unit. Directors who head the various functional directorates of the Commission are formally appointed following a rigorous selection process. The Commissioner delegates various powers and functions to directors and staff reporting to him, to ensure that the Commission’s business is carried out efficiently and effectively. Delegations are reviewed regularly and delegates are expected to act in accordance with policies and procedures approved by the Commission.

Executive Oversight

The Commissioner and the two Deputy Commissioners set priorities, appoints and evaluates the performance of the directors, and approves delegations, budgets and business plans for each directorate. Through day-to-day contact with executive management and staff, and through written reports, the Commissioner stays informed about operational performance, finance, human resources, information technology and all other matters.

Decision Making Process

A Top Management Committee (TMC) meeting is held every second Wednesday of each month. Membership of the TMC includes the Commissioner, his two Deputy Commissioners and all Directors who are heads of the six Directorates. Other members are the Legal adviser and Heads of Enforcement & Compliance, Audit and Corporate Affairs Units.

RIFAN Is Born!

From left: Manager Partner, Carmel & Associates, Hon Lawrence Dafiode; National Chairman, Retail Insured Family Association of Nigeria, Akin Bello and Managing Director, Universal Insurance Plc, Ben Ujoatuonu at the event in Abuja.

What is RIFAN?

Retail Insured Family Association of Nigeria (RIFAN) is a non-profit
organisation bringing together an association of insuring public in Nigeria
with the primary objective of enhancing insurance growth in Nigeria.

Our mission is to be a trustworthy and useful information resource and an
effective voice for consumers of all types of insurance in all 36 states of
Nigeria and the Federal Capital Territory.

RIFAN was founded by a group of technocrats of high integrity which
includes lawyers, insurance professionals, financial planners, Security
Experts, construction experts, and technology experts. No insurance
companies underwrite or fund our programs.

Our members benefit tremendously from this association as they now
have a voice through which they can ensure that their insurance claims
are attended to expeditiously and are settled within the shortest possible
time frame.
The RIFAN Portal is designed to deploy cutting edge technology and
transparency in the purchase and management of insurance products and
thereby creating wealth for the nation through renewed confidence in the
purchase of insurance in Nigeria.