Insurance Industry is Poised to Provide Risk Management Expertise, Says Temowo

Mr Bola Temowo
Chairman IICC
The chairman Insurance Industry Consultative Council (IICC), Mr. Bola Temowo has said that the insurance industry is now poised more than before to play its role in the provision of risk management expertise for the economic growth of the country.
Temowo who stated this at the maiden edition of the insurance industry mega conference organised by the IICC in Abuja said the industry is positioned to play the above role in the face of increased volatility of Nigerian environment.

He said the industry is prepared to do this through proper equipment of its workforce.
“The continuous education of our members will continue to receive priority attention in order to equip them adequately for the more challenging roles of insuring the nation and its citizenry”, Temowo said.
He noted that all strata of Nigeria’s economy are in dire need of righting the wrongs of many years and that the insurance industry has its fair share of unwholesome practices, which remained the bane of its image for many years.
According to him, with collective determination and efforts the industry would overcome the ills of its early practitioners.
“With our collective resolve and the robust regulation from the regulatory authority, we are gradually overcoming most of the ills of the sector”, Temowo noted.
Also speaking at the event, Managing Director LASACO Assurance plc Olusola Ladipo-Ajayi emphasised on the need for good corporate governance in Nigerian insurance industry.
He defined corporate governance as the mechanisms, processes and relations by which corporations are controlled and directed.
The LASACO Insurance boss said the codification of corporate governance is not new to Nigerian market adding that all the regulators have their codes, though the Financial Reporting Council has come with the proposed macro – code for all and sundry.
He expressed the regret that though the insurance law made six insurance policies compulsory with the aim of protecting lives and properties of Nigerians as well as grow the industry’s premium, no effort is made to enforce the compulsory insurances.
Alll exist on paper. No action is being taken to enforce the laws as is common in developed countries.
The laws are therefore violated with impunity”‘ the LASACO Assurance boss noted.
According to him,due to the low premium rating structure, one can safely say that the industry could have generated at least quadruple the current premium at the same level of business written.
He said the practitioners need to rethink the future of insurance observing that they merely pay lip service to the correction of the lapses.
Observing that regulation has become more stringent globally in the finance sector, Ladipo Ajayi noted that operators work harder than regulation to bend the rules without breaking adding that on their part, the regulators faced with this frustrating position sometimes over react killing a mosquito with a sledge hammer.
Suggesting the way forward for the industry Ajayi said the regulator should discard the era of fixed capital requirement and pursue the company specific capital requirement models.
He also said there is need for a balancing act on penalties met out by regulator if the penalties are not to be seen as indispensable source of income.
Also, he wants industry operators to think of the effect of their actions, not only in their own selfish interest but also in the overall interest of the nation. 
Source: Thisday