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Nigeria: Why Insurance Industry is not growing

An insurance expert has identified government’s non-challant attitude towards insurance laws and practices as one of the major factors hindering the growth of the industry.

The Managing Director, UnityKapital Assurance Plc, Alhaji Mohammed Kari, who stated this at the 39th Annual General Meeting of Nigeria Insurance Association (NIA) in Lagos, said that the failure of government to take the implementation and enforcement of insurance laws seriously has imparted negatively on the industry.

He pointed out that the National Pension Commission (PenCom) which was established some few years back, was able to accumulate funds a thousand times more than what the insurance industry has achieved over the years as a result of implementation and strict compliance to its laws by government.

He lamented that the insurance sub-sector, which is the biggest generator of funds for every financial sector of any economy, is not encouraged. He further noted that non- compliance with the industry’s market agreement by its operators also cripple the activities of the sector.

Kari, explained that the N200 billion recorded by the industry in 2009 financial year could have been maximised if the practitioners adhered strictly to the norms of the profession.

He further stated that this is the time NIA should declare its stand and ensure that member companies abide by the requirements of the agreement and equally spell out punishment to be meted out on offenders.

He suggested that the only thing that will bring improvement to the industry is change, adding that change can only come if offenders were punished accordingly.