Dangote Challenges Insurance Operators on Risk Management

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Ebere Nwoji

President of Dangote Group of Companies, Alhaji Aliko Dangote,has urged insurance operators in Nigeria to add value to the business of their major clients through the acquisition of technical knowledge of their clients’ business in order to be in position to educate them on basic safety knowledge.

Dangote, who frowned on the current trend among Nigerian insurers in which he said they are only talking about their premium collection from the very beginning of every insurance policy contract, to the end, without thinking about how to reduce their clients’s risk exposure, noted that there is a big gap between Nigerian insurers and technical knowledge of their clients’ business.
He therefore challenged the insurers to aspire to get adequate knowledge of modern risks they underwrite such as cyber risks and the workings of credit insurance.

Dangote, who spoke at the First Interactive Session with major consumers of Insurance Products and Services organised by the National Insurance Commission (NAICOM) in Lagos, said because of lack of adequate knowledge of the risk they underwrite, the insurers are often exposed to unnecessary risks and that insurers delay in the payment of the resulting claims.
Dangote was represented at the occassion by the Chief Risk & Insurance Officer Dangote Industries Adenike Fajemirokun.

He noted that some insurance firms owe his company claims of over N400million since 2012 despite the fact that he paid his claims regularly.
Speaking on the issues facing his organistation as a consumer in their insurance portfolio, he called on insurers to collaborate with the NAICOM for transformation.
He said insurance consumers expect NAICOM to increase regulation while insurers should engage themselves in self- regulation.

“Insurers need to be more proactive in studying the operations of consumers and fashion out generic risk solution models. There should be stronger insurers with prompt claims paying abilities and consistent customer experience.”
He highlighted some expectations of the insurance consumers from the operators as deep/full understanding of the sectors they operate in full understanding of clients’ business, understanding emerging trends in the local and international insurance markets as well as emerging trends in the local, regional and global economy.

Also speaking at the event, the Commissioner for Insurance, Mohammed Kari, said NAICOM, being the regulatory agency is saddled with the responsibility of superintending over the insurance sector in Nigeria.
He said the commission has, as part of its primary mandate the protection of consumers (policyholders) – both corporate and individual.

“Our gathering here today is indeed, one of the steps being taken by the Commission towards achieving that mandate. The timing for this session was carefully chosen and considered appropriate in view of current changes in the public sector environment especially with the Executive Order on Ease of Doing Business issued to all ministries, departments and agencies of government.