Banks granting exporters credit guarantee schemes will soon have a sigh of relief as the insurance industry partners with NEXIM Bank and others to grant export credit guarantee policy.
NEXIM bank’s export credit guarantee facility is designed to protect banks in Nigeria against the risks of non-payment for loans, or advances granted to exporters to meet short-term export contracts.
Insurance industry trade group, the Nigerian Insurers Association (NIA) says with the help of her team of actuaries, it is discussing with NEXIM Bank, MNK Re Limited (Broker at Lloyd’s), Professional Reinsurers Association (PRAN) and the Guild of Marine Surveyors with a view to developing cover for Export Credit Guarantee Insurance and Political Risks for the banks and exporters.
Ganiyu Musa, chairman, NIA said during a press briefing in Lagos that these were part of the market development initiatives being pursued by the industry, geared towards growing the market and deepening penetration.
Musa said discussion is ongoing between the Association, NAICOM, Nigerian Shippers Council, Project IT Vendor-BrandOne and all other stakeholders in the maritime value chain including Shippers/ Importer, Clearing Agents, Track Owners, Guild of Marine Surveyors, PRAN and Tracking Companies on provision of cover for containers.
He said this will be a risk management substitute for container deposits being made by the importer to the shipping companies thereby eliminating capital flight from the country.
Musa said the Association would continue to complement the efforts of NAICOM in their campaign on domestication of compulsory insurances in the States.
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“It is our expectation that laws on compulsory insurance can be domesticated in other states just as Lagos state has done. Beyond the efforts of the Commission, the Association has also upscale its market development initiatives through strategic engagements with the various states.”
“The Association is also working with Lagos State government in the enforcement and validation of genuine compulsory third party insurance made mandatory by Law through Automatic Number Plate Recognition (ANPR) device of VIS, through Nigerian Insurance Industry Database (NIID) Verification Platform.”
According to him, the Association is in discussion with the Lagos State Building Control Agency (LASBCA), with a view to using the Nigerian Insurance Industry Database (NIID) verification platform for enforcement, verification, and validation of genuine compulsory buildings under construction insurances.
They are made mandatory by Law through Insurance Act 2003 (Section 64), and Lagos State Urban and Regional Planning and Development (Amendment) Law 2019; CAP U2 Lagos State Building Control Agency Regulations, 2019.
He further noted that the association is collaborating with LSC, NCRIB and Courteville on the implementation, enforcement and validation of genuine compulsory occupiers liability insurance made mandatory by Law for all public buildings through NIID) Verification Platform.”
“The exercise will be launched 28 April 2022 and Enforcement will commence in May 2022. We are building capacity of its members to enhance compliance in line with the emerging regulations, Musa said.
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