|Minister for Finance, Mrs Kemi Adeosun|
Tuesday, 12 July 2016
FG to Enforce Compulsory Insurance Policies. cc @DrJoeAbah
The Minister for Finance, Mrs Kemi Adeosun, has said that the Federal Government will enforce the compulsory insurance policies and ensure that the cost of insurance is included in its expenditure.
She said this during the second edition of the National Insurance Conference in Abuja on Monday, which had in attendance chieftains from all the sectors that make up the insurance industry.
Adeosun said, “We are committed to growing a strong and resilient insurance sector, which will contribute better to the Gross Domestic Product. The government will impose insurance and I will enforce insurance in the Ministry of Finance and in everything we are doing.
“We will ensure that insurance cost is included in government expenses because it is compulsory.”
The minister observed that there were huge opportunities in the insurance sector, but that the penetration was still very low compared to the situation in some other countries.
As managers of risks, she urged the insurers to take the lead by taking more risks.
Adeosun warned underwriters to desist from discounting premium, a development that makes them charge ridiculous rates, especially in the public sector, adding that this practice was unhealthy for the sector.
To stop the practice of charging very low rates, the minister said she was working with the insurance regulator to eliminate rate cutting and create an eligible pool that would give everyone a fair share of the government’s underwriting business.
She also stressed the need to address the annual review of brokers’ licences, adding that it was necessary to ensure the existence of the brokers in order to boost the confidence of the insuring public in them. (Punch)