Controversy over Take Off Funds May Stall Insurance Rebranding Project

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There are indications that insurance industry’s rebranding project, scheduled for January 1, 2018, may not kick off as controversy over fund raising for the project is currently tearing the industry’s market leaders apart.

The rebranding project, an initiative of the Insurers Committee set up by the National Insurance Commission (NAICOM), the industry regulator and industry operators for the purpose of advancing the industry and creating awareness and trust among the public was scheduled to start this year but was later postponed to January due to funding issue.

The Chairman, publicity subcommittee, Oye Hassan-Odukale, had promised at the end of one of the meetings of the committee in Lagos that the rebranding project would start in January 2018.

However, THISDAY findings revealed that the project may not commence as scheduled as individual insurance firms are not ready to spend on the project.
According to findings, this time, the insurers are at loggerheads over who would bring the bulk of the money needed for the project.

It was gathered that after casting lot, they mandated the industry regulator, the National Insurance Commission (NAICOM) to provide N50 million out of the N250 million needed to kick start the project.
This represents 20 per cent of the total bill, but the Commissioner for Insurance, Mohammed Kari, argued that the project is operators’ project and for their own benefit therefore they should not mandate the commission to give them specific amount.

Kari, was said to have insisted that the commission would decides what amount to contribute for the project.
It was also gathered that against this backdrop, the operators had turned to the market leaders like Leadway Assurance, Custodian and Allied Insurance Plc among others to take advantage of their market leadership position and provide the bulk of the money. At present, their responses obtained from the companies have not been promising.

Meanwhile, industry observers have opined that until the insurance industry operators change their current attitude of low spirit in things that would grow the industry, efforts towards achieving the much needed advancement of the industry will remain elusive.

According to them, the operators’ lackadaisical attitude made the industry to lose the workmen compensation business in 2010 to the National Social Insurance Trust Fund (NSITF).
They called the industry market leaders to live up to their expectation and take up the responsibility of providing the bulk of the money needed to take off the Insurance rebranding project.