What do you think of his tenure as insurance Commissioner and how would you rate his performance? InsuranceAdviceNigeria highlights 15 things he would be remembered for.
#1: ‘No Premium No Cover’. For years, uncollected premium dogged the performance of Insurance companies. Successive administrations lacked the political will to implement the Insurance Act to the letter. It took the courage and wisdom of a Daniel to do this in 2013. Bye bye to the era where insurance covers were being written on credit!
#2: Zero Tolerance for Non-Settlement of Claims– Before Fola Daniel came to the scene, the Nigerian industry had a bad reputation for settlement of genuine claims.The industry was called names such as 419, ‘Gbajue’ Abracadabra etc because it was normal to find an insurer using tiny prints as a reason for non-settlement. This dampened the interest of the insuring public in insurance. Daniel came with Zero tolerance for Claims settlement. He established the NAICOM Complaints Bureau Unit, Contact Centre and an Insurance Ombusdman all aimed at tackling the issue.Today, unlike pre-2007, it is hard to find any insurer who fails to honour its obligation by not paying claims as such insurer risks losing its operating licence. The fear of NAICOM has become the beginning of wisdom.
#3: Entry of Foreign Insurers. Fola Daniel’s reforms attracted Foreign investment into Nigeria. Under his watch, Nigerian insurance industry became the toast of global investors/foreign insurers as AXA, Old Mutual, Liberty, AIG, Metropolitan Life, Sanlam, Green Oaks etc have all bought stakes in Nigerian underwriting firms.
#4: Takaful (Islamic Insurance). He introduced Takaful in 2012 and released the Guidelines in 2013 to further deepen the market.This was an innovation to drive financial inclusion, increase insurance penetration in Nigeria and make the insurance industry contribute more to the nation’s Gross Domestic Product (GDP).
#5: Intervention in Management of Companies. Goldlink Insurance Plc, Investment & Allied, International Energy Insurance Plc, A & G Insurance Plc, Spring Life Assurance Plc and Fidelity Bond Insurance Brokers would not forget Fola Daniel in a hurry. Under Daniel’s leadership, NAICOM wielded the big stick against these companies. IEI, Goldlink, Investment and Allied had their Boards sacked and replaced with Interim Management Boards to oversee their operations to preserve investors and policy holders whilst Spring Life, A &G and Fidelity Bond Insurance Brokers had their operating licences suspended.This was novel in the history of Insurance regulation in Nigeria.
Please share with us what you think should be the agenda for a New Insurance Commissioner.
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Watch Out for the Concluding part ………