The National Insurance Commission (NAICOM) said that the sector has been able to sell insurance to 100,000 persons through the use of mobile telecommunication network (MTN). Speaking in an interview with journalists at just concluded Africa Insurance Organization, (AIO) conference held in Kigali, Rwanda, the Commissioner for Insurance, Mr. Fola Daniel stayed that MTN has helped to deploy insurance to 100,000 persons monthly in Nigeria.
The commissioner noted that the network provider has helped in deepening insurance penetration through the selling of micro insurance products to 100,000 Nigerians monthly across the country.
According to him: “ if four other service providers are doing half of what MTN is doing it means every month the industry will be having at least 250,000,” this he said will lead to rapid growth in the industry.
He said that the deploying of Information Technology ( IT) and telephoning as a means of selling insurance in Nigeria and Africa is the right thing that will move the industry forward to a better insurance business.
He was of the opinion that the use of IT and telephoning to sell insurance will reduce the cost of doing business, adding that Nigeria is one of the highest in Africa where the cost of doing business is very. He further said that excluding reaching the people faster through IT, telephoning is accessible to average Nigerian He stated that if the Nigeria insurance industry finds a means of selling more of insurance policies without incurring extra cost it should be embraced by the industry.
Speaking on what the commission is doing to checkmate the partnership of telecoms and insurance against fraud, the Naicom boss said that such partnership are put under telescope, adding that all agreement entered into by insurance companies and the service provider are submitted to the commission for further verification.
He noted that the aim of the verification is to make sure that the interests of the insuring public are protected by such policies being introduced by the companies.
He said after agreement the commission look at performance of the company in terms of returns on business on monthly basis and payment of claims by the company. The assured that unless these processes are done correctly, Nigerians will be disappointed by the industry On performance of Nigeria insurance regulation, he said that the insurance industry is resonantly compliant, despite not yet in the level of the developed nations,