Following the recent #EndSars protests that led to civil unrest and destruction of properties across the country, the National Insurance Commission (NAICOM) will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums, the Commissioner, Mr Sunday Thomas, has said.
Thomas spoke at the just concluded 2020 Insurance Professionals’ Forum of the Chartered Insurance Institute of Nigeria (CIIN) held in Abeokuta, Ogun State.
He said the new guideline will also ensure that profitability is guaranteed and claims are settled promptly without financial strain on the companies,
He disclosed that the widespread protests, civil unrest and destruction of properties and others from the #EndSars protest fall under Strike, Riot and Civil Commotion (SRCC) clauses.
He however, assured that as Nigeria reals in the pain of the destruction and losses suffered this year from #EndSars protest and COVID-19, the Nigerian insurance industry will utilise 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.
He noted that the recent outbreak of protests and civil unrest across the country and the resultant losses has exposed the vulnerability of government, businesses and individuals to unforeseen events.
While noting that these incidents have further reinforced the value and necessity of the industry, he said they are likely to increase insurance claims, thereby exacerbating the already weakened liquidity and capability of insurance companies.
He said: “It is pertinent to note that insurance coverage for the SRCC clauses, which were redundant in the past and which by competition are mostly offered free of charge, must now be adequately rated as an important product for the survival of Nigerian businesses.
“Therefore, the theme of this year’s Professional’s Forum, “Defining the Future of the Insurance Industry”, is apt and timely. The suddenness of the COVID-19 pandemic imposed immense pressure on all businesses including insurance business. Pressures faced by consumers in the form of reduced finance and business activities, lack of 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 added.
“We had previously acknowledged the changes that the advent of technology was gradually institutionalising but that slow and measured process has been heavily jolted by the outbreak of the Covid-19 Pandemic. As risk managers, one might wonder that if others were not ready, the insurance industry should have structures in place to cater for any surprises; alas, the current situation is what it is. At some point during the year, it was a struggle to just stay alive. Permit me to borrow this phrase from our millennials, “It is those that are alive that will draft policy documents and pay claims” he added.
