The Nigeria Insurers Association (NIA) is promoting self-regulation among its member companies, the Chairman, Mr. Tope Smart, has said.
He spoke during a media parley in Lagos.
Smart said the association is taking self-regulation more seriously than ever before, following the cancelled Tier Based Minimum Solvency Capital (TBMSC) introduced in August 2018, and later cancelled the regulatory body of the industry, the National Insurance Commission (NAICOM).
The TBMSC is a planned policy that would have categorised insurance companies into Tier 1, 2 and 3, and force many to recapitalise to be well classified.
The NIA chairman stated that the association had two years ago launched a transformational agenda that would grow insurance companies and the sector.
He added that it is in the interest of the operators to shore-up their capital and not wait to be compelled by the government to do so.
He said: “Self-regulation is one of the things that we are trying to promote at NIA. In view of this, we launched a transformational agenda two years ago. We don’t want to wait until NAICOM tell us to raise capital. We want to on our own decide that the capital we are using to trade needs to be increased to a particular threshold. We have agreed among ourselves that this is necessary.
“When the commission cancelled TBMSC, we discussed the issue at our council meeting and told our members to shore up their capital so that they can be responsible and pay claim. It will also enable us to play where we are supposed to play and to carry the risk we are insuring. So this is an issue that we are taking up at Council. Going forward, we don’t want to wait for government to say do this or that and that is why we have taken it up as an association.
“The industry is moving forward and it is evolving. We are not yet where we plan to be but we are working towards getting to the promised land. There are a lot of innovations in the industry which, when compared to the past, we can say the industry is much better. We are happy that service delivery of most companies are getting better every day. We have a customer complaint bureau where members of the public can make a report on any issue they have with any insurance company. We have received several complaints and we have resolved many of them. So the companies have improved. We are not done yet because we believe our best is yet to come,” he added.