The Nigeria Insurers Association (NIA) has commended NAICOM for signing a Memorandum of Understanding (MoU) with some anglophone countries to strengthen cross border insurance supervision in West Africa.
The Director-General of NIA, Mr Sunday Thomas, gave the commendation in Lagos on Friday in an interview with the News Agency of Nigeria (NAN).
He said that the agreement would facilitate generation of social capital, trust and understanding among member-nations.
Thomas said that the MoU underlined NAICOM’s goal to build effective working relationship with regulators in the West African sub-region and beyond.
He said that the MoU was also in conformity with the principles of International Association of Insurance Supervision (IAIS).
Thomas expressed optimism that the collaboration would enhance cross-border supervision among member countries for increased productivity.
“Insurance in the whole of Africa has been characterised by low penetration and poor contribution to the African financial growth in most countries.
“Therefore, maintaining efficient, fair, safe and stable insurance market in the West African region would boost financial growth and benefit policy holders.
“The MoU should also help to effectively communicate with each other in addressing fraud across jurisdictions in compliance.
“Promotion of international standards to foster favourable investment environment and orderliness in our market and others in West Africa will be of great advantage, “ he said.
Thomas advised NAICOM to use the partnership to deepen insurance penetration in Nigeria which would translate to market growth in West Africa.
“NAICOM must impact knowledge derived from the partnership on insurance operators in Nigeria.
“It must also be used to increase awareness on insurance among Nigerians as diagnostic study says less than one per cent of the adult population in Nigeria has access to a (voluntary) insurance policy.
“Nigeria is among the least countries in terms of insurance contribution in West Africa.“ (NAN)