The Market Development and Restructuring Initiative (MDRI) targeted at driving insurance industry growth from a N400 billion premium income earner to over N1 trillion has suffered several drawbacks since its inception in 2010.
Though the initiative by the regulator, the National Insurance Commission (NAICOM), has since been implemented, but not fully.
The enforcement, especially of the six compulsory insurance has remained difficult for the Commission to achieve due to its incapability.
The six compulsory products are Third Party Motor Insurance, Group Life Insurance, Builders Liability Insurance, Occupiers Liability Insurance, Building Under Construction and Health Care Professional Indemnity.
NAICOM Commissioner for Insurance, Mr Sunday Thomas is, however, insisting that the MDRI is a critical to deepening insurance penetration.
He stated that the objectives to do so identified in the Commission’s Corporate Strategic Plan 2016-2020 were to enhance compliance with compulsory insurance; eradicate fake insurance agents and forged policies from the market; facilitate the development of other financial inclusion insurance products and channels for their distribution; and implement strategic market growth initiatives such as government assets insurance.
He said while a lot had been achieved by the Commission, more needed to be done if they must attain the desired goals.
He said: “My vision is to grow insurance be ensuring enforcement of compulsory insurances across the country. The commission, over the years, had incepted a number of initiatives, especially in market development, to boost insurance penetration and this is what we will do.
“As 2020 continues to unfold, giant strides will be made by the commission in all aspects of its statutory responsibilities. This is the time to put the past behind us and look forward to a better and more vibrant sector. The task of building an insurance sector of our dreams is a collective one and thus, all hands must be on deck to ensure our dreams become realities.
“We recognise the impact of conducive work environment to an effective and efficient regulatory system and this will remain our priority.
“The second phase of the MDRI will soon be unveiled and it will mark out targets for stakeholders. We shall pursue the continued implementation of compulsory insurance in every nook and crannies of the country.
‘’We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance, thus far hence, our resolve to work with relevant stakeholders to ensure a seamless drive.
‘’Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic national assets. We will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.’’