Insurance industry needs FG to clear N8.4bn premium backlog – expert

Mr Kayode Oshinuga, the Managing Director of Eminent International Loss Adjusters Ltd., on Wednesday said the Federal Government owed N8.4 billion in premium payment on insured assets.

He said the settlement of the premium backlog by Federal government would be its greatest support to the industry.

Oshinuga told our reporter in Lagos that this would also check the wrong perception of the industry by Nigerians.

He said that this would provide funds for long-term growth of the industry and the economy.

“All they need to show that are in support of the industry is to pay N8.4 billion premiums they owed insurance industry.

It was also reported that the Minister of Finance, Mrs Kemi Adeosun, has promised at the just concluded 2017 National Insurance Conference (NIC) that Federal Government would ensure adequate insurance coverage for national assets.

The 2017 edition of the conference was the third since the inception of the Insurance Industry Consultative Council (IICC) in 2015.

The IICC is constituted by all the arms of the insurance industry.

They include Nigerian Insurers Association, Nigerian Council of Registered Insurance Brokers and Institute of Loss Adjusters of Nigeria, while the Chartered Insurance Institute of Nigeria serves as the coordinating arm.

Oshinuga said that the practitioners were happy to hear this news, but appealed to the federal Government to clear the premium backlog on insured assets.

He said that the future of insurance business in Nigeria would be compromised if the industry refused to align with the global trends in technology.

“Technology is taking over the whole world; payment system is changing with trends.

“We practitioners have talked so much about deepening insurance penetration, but insurance penetration cannot be deepened without employing technology to fast track insurance deliveries

“This will enable citizens on the streets to access insurance more easily and he or she does not need to spend money on transport to go to any insurance firm to buy a policy.

“Brokers and insurance agents normally approach people to get insurance, but technology could be used instead; it is faster and easier and effective.

“It absolutely discouraging that an agent would take transport of N200 to collect a premium of N2000 and what if the policy holder did not pay at the end of the day?

“But with technology, a policy holder can pay on the phone or laptop,’’ he said.

Oshinuga commended the National Insurance Commission (NAICOM) for repositioning the industry and called for stronger ties with service providers to fast track the development of the industry.