National Insurance Commission, NAICOM, has disbanded the monopoly of Nigerian Agricultural Insurance Corporation, NAIC from the exclusivity of agricultural insurance in the country as the commission has open its doors to other underwriters willing to go into the lass of business.
Commissioner for Insurance, Mr Fola Daniel made this known recently at a two training programme organised by the insurance regulatory body for Journalists in Uyo, Akwa Ibom State, titled, ‘Development of Micro-Insurance Market in Nigeria.
Daniel explained that NAIC cannot be able to contain the huge opportunities in agricultural insurance in the country hence the need to give other insurance companies the leverage to emplore that business.
“At the moment, it seems NAIC Act has conferred on NAIC the exclusive right to insure all subsidised agricultural risk;” however, opportunities still abound in the areas of commercial unsubsidised agricultural risks”.
“The commission shall give appropriate consideration to underwriters desiring to underwrite agricultural insurance under the relevant provisions of the law. Existing underwriters are well advised to take advantage of the capacity already accumulated by NAIC,” he said.
He equally pointed out that as means of attaining sufficient capacity for large risks, the commission shall actively support pool arrangements, co-insurance and facultative reinsurance placements.
He said that NAICOM was willing to permit other insurance companies that desired to take on the class of insurance that falls under micro-insurance.
According to him, “The development of agricultural insurance is another area the commission is very concerned about. Although, the Nigerian Agricultural Insurance Corporation (NAIC) seems to have the exclusive right to all subsidized agricultural risks in the country by virtue of the Act that established it, huge opportunities still exist in the areas of commercial unsubsidized agricultural risks.”
By Favour Nnabugwu