An Insurance expert, Mr Mufutau Oyegunle, on Thursday commended the National Insurance Commission (NAICOM) for its new rules to protect policy holders and beneficiaries of insurance contracts against loss.
Oyegunle, who is the Managing Director of LAKED Insurance PLC, Lagos gave the commendation in an interview with Newsverge in Lagos.
He said that the rules, aside restoring policy holders’ confidence, would boost the industry’s contribution to the Gross Domestic Product (GPD).
Newsverge reports that NAICOM, on Jan. 27, released 2017 insurance industry regulatory rules to reposition the industry for improved performance.
Some of the rules include capital verification, market development, management expenses, statutory returns and Risk Base Supervision.
Oyegunle said the new rules were worth applauding due to the public apathy to insurance policies.
According to him, the capital verification, which is part of the priorities, will protect policy holders and beneficiaries of insurance contracts against any loss.
“But at this point, I want to appeal to NAICOM to consider the merger of companies that fail to meet the capital verification limit.
“Merger would be a better option because the current economic recession may have eaten deep into the finances of many companies,’’ he said.
Oyegunle said the re-launch of Market Development and Restructuring Initiative (MDRI) would also improve data collection and provide timely information for prompt decisions in the industry.
“This will also ensure the spread of micro-insurance,’’ he said.
The insurance expert urged stakeholders to support the commission to move the industry forward.