By Ebere Nwoji
The Chairman, Nigerian Insurers Association (NIA), Eddie Efekoha, has called on insurance operators to respond quickly to the changing dynamics of the market space just as a sectorial group of the association has counseled the operators to consider the use of warranties in place of clauses in their policy statements to avoid ambiguity.
Efekoha, who charged the insurers in his acceptance speech as the new NIA helmsman said this has become necessary to ensure that Nigerian insurers do not go into extinction due to the present global challenges.
Efekoha, stressed that the economic space is shrinking and businesses are facing greater threats; and the insurance sector is not insulated from developments in the global economic space.
He noted that there is no better time than now to strengthen insurance operations, adding that there is a need for operators to come together to save the industry and set it for improved performance.
“We are fully aware that the there is a need for us to come together to save our industry now more than ever. The economic space is shrinking and businesses are facing greater threats; and the insurance sector is not insulated from developments in the global economic space.
“It therefore behoves on us to respond quickly to the changing dynamics of the market space so that we do not go extinct in the face of the global pressures on our businesses. Indeed there is no better time than now to strengthen the Association and reposition it for the task ahead,” he said.
His advice to the insurers, is coming on the heels of a similar call by a group on the insurers to consider the use of warranties as against clauses in insurance policy documents to enable operators take definite actions in the event of breach by the insured.
The Fire Offices Committee of the association made gave the charge in their presentation to the association. The committee urged insurance companies to use more of warranties in the wording in their policy documents, adding that warranties are stronger than clauses, as it imposes the burden to do or not do something on the insured.
The group maintained that warranties empower the insurer to take definite actions in the event of a breach by the insured.
They urged insurers to ensure their policy wordings suit their reinsurance arrangements.
Also, the committee enjoined insurers to ensure there is alignment of interest in the risk being proposed by the insured, stressing that the insured must be ready to invest in the risk assessment they desire.
On how to remain profitable, they urged insurers to be creative, monitor and identify accumulated risks, employ best practices and encourage teamwork.
In recent times, insurance managers have been complaining of burden of payment of non- genuine claims in a bid to launder the image of the industry.
Recently, some of the insurance chief executives complained to their shareholders at their annual general meetings that payment of claims from the Dana Air crash, which occurred few years back affected their performance and payment of returns to the shareholders.