EndSars: NAICOM call for the timely return of businesses

The National Insurance Commission (NAICOM) has urged insurance operators to ensure timely recovery and restoration of businesses affected by the recent #EndSARS riot.

The Commissioner for Insurance, Sunday Thomas, stated this at the ongoing Chartered Insurance Institute of Nigeria (CIIN) 2020 Insurance Professionals’ Forum, at Abeokuta, Ogun State, while urging insurers to display their role in reinforcing the economic resilience of individuals, businesses and the economy at large.

“More recently, widespread protests, civil unrest and destruction of properties and others have created further socio-economic hardship and barriers for business profitability and growth.

“As Nigeria reals in the pain of the destruction and losses suffered this year, the Nigerian Insurance Industry must utilize the opportunity to lead in the quick recovery and restoration of the affected businesses and also showcase its role in reinforcing the economic resilience of individuals, businesses and the economy at large.

“Therefore, the theme of this year’s Professional’s Forum, “Defining the Future of the Insurance Industry”, is apt and timely,” he said.

Thomas noted that the suddenness of the COVID-19 pandemic imposed immense pressure on all businesses including an insurance business, stressing that pressures faced by consumers in the form of reduced finance and business activities, lack access to credit, expiration and wastage of perishable goods, temporary or permanent business closures and employee contract terminations, life-threatening illnesses and deaths all combined to increase the propensity for claims.

He maintained that one of the major challenges for insurers was the inability to market/sell insurance products to consumers during the pandemic which, in turn, reduced the premium income. This he said has necessitated the need for a robust online automated marketing and feedback system to reduce the dependence on in-person sales and marketing.

Thomas pointed out that considering that most losses arising from the pandemic are not adequately covered by existing insurance policies, it has become obvious that current insurance product offerings are not adequate to respond to emergent risks and needs of our society,” he added.