The Nationwide Insurance coverage Fee (NAICOM), Nigeria’s regulator of the insurance coverage sector, has introduced new Premium Charges for varied sub-categories of Motor Insurance coverage with impact from January 1, 2023 and that is unlikely to be postponed. It is because it was long-awaited by trade stakeholders together with some discerning patrons of this class of insurance coverage based mostly on the recommendation of their insurance coverage brokers and advisors.
Although the efficient date has come to many people and organisations as a shock and even unsettled their 2023 budgets, it’s changing into evident that the brand new Premium Charges maintain worth for all stakeholders and ought to be accepted with the understanding of the intent and objective NAICOM introduced it.
I’m all for this and could be partaking, enlightening and educating my group of policyholders, traders in insurance coverage and different associates on some great benefits of the brand new Premium Charges however what some describe as too quick a discover and poor timeliness. Value adjustments are the fixed now and insurance coverage is barely changing into a part of it, on this respect, after many a long time.
That mentioned, in my opinion, the distinction between this announcement by NAICOM and former ones, is the necessity to actively have interaction the general public with a view to answering their questions, which solutions the insurance coverage corporations can not readily and successfully reply.
A few of these questions are:
- Does this have an effect on everybody with a Motor Insurance coverage Coverage or solely these whose insurance policies fall due for renewal on January 1, 2023 and subsequent anniversary dates?
- What is going to occur to those that had lately paid N5,000 for Third Occasion Motor Insurance coverage of their personal autos and others? Will they be required to pay extra N10,000 to take pleasure in the advantages of the coverage?
- What ought to policyholders count on by way of claims settlements and funds? Are the durations nonetheless left for the insurance coverage corporations to find out?
- Will insurance coverage certificates issued from Automobile Licensing Workplaces proceed to be legitimate and acceptable?
These have been among the Regularly Requested Questions (FAQs) I’ve acquired because the announcement by NAICOM and the responses to those questions could be crucial, not solely to direct the right actions of the insuring public but additionally to make sure pretend and unscrupulous individuals or organizations don’t make the most of harmless Nigerians.
Not like previously, NAICOM would want to open its portal to obtain the questions and supply solutions promptly.
Contemplating that we had a worsening scenario the place insurance coverage corporations that partnered with Automobile Licensing Workplaces to promote Third Occasion Motor Insurance coverage ended up with N500 of the N5,000 paid, NAICOM must most likely pronounce a ban on the sale of insurance coverage at these workplaces. This can instantly get rid of the opportunity of the actors merely reaching agreements on remitting quantities decrease than N15,000 and nonetheless leaving insurance coverage corporations within the place the place they’re unable to settle and pay claims promptly; one of many causes for the brand new charges.
Sadly, NAICOM doesn’t but have a Directorate for Enlightenment and Enforcement, which might have taken on the problems following the announcement.
With out NAICOM’s engagement, enlightenment and training of the insuring public and policyholders, the latter are left to analyze and discover solutions for themselves. Due to this fact, registered and licensed insurance coverage brokers tied to insurance coverage corporations, and insurance coverage brokers, might want to undertake the Herculean activity of partaking, enlightening and educating the insuring public for correct {and professional} steering. Sadly, the capability to go that manner is both absent or difficult, attributable to previous experiences.
Consequently, the insurance coverage trade in Nigeria is now taking a bend that can require visibly new actions to present extra confidence to the general public and the regulator and operators can not simply afford to make use of the previous technique of communication to deal with these new points.
That is the time for the NAICOM-led Insurance coverage CEOs Committee to interact specialists in advertising and marketing communications, who’ve all the time been prepared and able to work with the insurance coverage trade leaders. We have to open up, could also be by issuing a Request for Proposal (RFP) and deciding on from submissions that may be made by the perfect advertising and marketing communication corporations in Nigeria.
Nigerians, in my opinion, are wanting ahead to taking over totally different insurance coverage insurance policies to guard themselves from rising dangers and need to have robust and efficient relationships with insurance coverage operators.
Apparently, digital options supplied by Insurtech start-ups have enhanced the probabilities of people and organisations getting VALUE from insurance coverage.
Making insurance coverage work in Nigeria is a mission that should be completed by all stakeholders within the insurance coverage trade, and the time to galvanise all our efforts is NOW!