Do insurance underwriters have enough resources and capacity to immediately contain emerging risks associated with terrorism and kidnapping? The answer is no.
The Chartered Insurance Institute of Nigeria is currently urging the Federal Government to create a special intervention fund that will support insurance underwriters.
President and Chairman of Council of the institute, Dr Wole Adetimehin, said this during the recent inauguration of the Abuja executive branch of CIIN.
The event also witnessed the investiture of a new chairman of the branch, Mr. Bashiru Kunle.
Adetimehin said the intervention fund would enable insurance underwriters to tackle emerging security risks such as kidnapping and terrorism.
He said while the industry was developing an insurance pool, which would contain these risks as well as guarantee greater confidence from the insuring public, the government needed to support the sector in the area of funding.
He said, “Let me call on the Federal Government to reinforce its efforts at stemming the tide of insecurity and ensuring that the identified culprits are punished in order to serve as a deterrent to others.
“On our part as an industry, we are poised to initiate suitable and relevant training programmes aimed at equipping practitioners with the necessary tools for underwriting the emerging risks exposures such as kidnapping and terrorism.
“We are also gearing up to develope pool formations, which can contain these risks and guarantee greater confidence from insuring public.
“Permit me to seize this opportunity in requesting government at the federal level to consider the creation of an intervention fund to support underwriters in tackling the emerging risks at this formative stage.”
He also stated that the institute’s support for the “No-premium-no cover” policy of the National Insurance Commission, adding that the policy would help to move the industry to the next level.
He said, “As an industry, we have an undisputed stake in the growth and development of our national economy.
“Our insurance policy packages will continue to indemnify businesses against losses and provide the necessary peace of mind for both local and foreign investors.
“There is no better time than now for a genuine national consciousness on the efficacy of insurance, especially with the spate of insecurity and the wanton destruction of lives and property by growing insurgency as well as natural disasters such as floods.”
In his acceptance speech, Kunle said the new branch executive would provide the right leadership that would further reinvigorate the branch machinery of the institute.
“We have collectively resolved in assisting the institute to actualise its charter in the propagation of insurance education especially in the northern part of the country,” he added.
