Insurance industry operators are seeking the support of the industry regulator, the National Insurance Commission (NAICOM), to pursue amendment of the Companies Income Tax Act 2007 (CITA) which it says is putting heavy tax burdens on her operations.
This, is said capable of inhibiting the desired growth of the market in an operating environment that has been characterised by competitive economic environment.
The insurers, under the umbrella of the Nigerian Insurers Association, has also appealed to the Commission to sustain its efforts in the enforcement of the compulsory insurances listed in the Insurance Act of 2003.
These issues, among others were presented by Gus Wiggle, the chairman of the association, to Fola Daniel, the commissioner for insurance, during a meeting between the CFI and chief executive officers of NIA member companies in Lagos recently.
The NIA boss who listed the giant strides the Association in recent times including strengthening of Customer Complaints Bureau which is an Alternative Dispute Resolution Mechanism, awareness campaign to increase insurance education thereby bringing more people into the insurance net and the establishment of the Energy and Allied Insurance Pool to curb capital flight said the sector could do better if all many of the loop holes were blocked.
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Other achievements are increase in retention and building capacity in energy and allied risks underwriting as well as sponsorship of a candidate to pursue a master of science degree in actuarial science in a UK university as part of capacity building initiatives in that critical area of insurance practice.
“We thank you for this visit and urge you to support the Association in the drive to increase insurance penetration in Nigeria. We have taken some bold steps and we believe that they will complement the reform initiatives you have introduced. Your support is critical to the growth and expansion of the insurance market in Nigeria,” he stated.
In his response, Daniel noted that the Association had taken some giant strides in some areas but added that more effort needed to be made to shore up the fortunes of insurance companies.
He challenged insurers to key into the growth agenda espoused by the government as a fall-out of the Insurance Summit held in December 2014.
While appreciating the role of insurance in national development, the CFI said the major goals of the Summit was to enable the insurance industry deliver jobs and skills development, build consumer trust and public awareness, increase access to insurance and enforcement of compulsory insurances. He therefore charged underwriters to own the deliverables from the Summit and ensure attainment of set goals.
He urged the Association to help work out modalities at ensuring competitive and appropriate rates in the industry.
The NAICOM helmsman commended the Association for setting up the energy and allied insurance pool and encouraged companies to key into the pool arrangement in order to participate fully in the underwriting of oil and gas insurance risks in the Nigerian market.
Modestus Anaesoronye
