Insurance, Pension regulators urged to embrace lighter models

Insurance, Pension regulators urged to embrace lighter models

The authorities responsible for the regulation of the nation’[s insurance and pension sub sectors have been challenged to adopt what has been described as light framework in other to ensure for the proper development of the industries.

The insurance industry is been supervised by the National Insurance Commission (NAICOM) while the National Pension Commission (PenCom) is in charge of the regulation of the pension sub sector.

Stakeholders in insurance and pension who gathered at the conference organized by the National Association and Insurance and Pension (NAICO) had after listening to the theme paper which centered on Financial Inclusion :The Micro Agenda for insurance and Pension Sectors which was presented by Dr Pius Apere, former Managing Director Linkage Assurance plc called for a more humane approach to regulating the conduct of insurance and pension businesses in Nigeria.

A communiqué issued at the end of the conference had demanded among other things that “the regulators for the two sectors should adopt light regulation model to drive micro pension and insurance to achieve financial inclusiveness”.

The communiqué had gone further to demand that the two sector regulators as a matter of policy, should engage informal sector operators to understand their peculiarities and needs to formulate policies that will drive their operations and break their burden of financial exclusion.

“That in spite of the challenges in the business environment, if the operators of the two sectors should build the much desired Trust and confidence that will drive the relationship with the target micro market segment, and make them see the value in the services they render, they will attract more contributors and insuring public into their net”, the resolution had added.

On the issue of the adoption of technology, the stakeholders noted that operators and regulators of the two sectors should leverage on technology especially telecommunication companies to reach the masses with financial inclusion message to improve the level of financial literacy in Nigeria.

“Operators should give due consideration to attachment of incentives to woo and retain contributors and policy holders”, it was recommended.

Continuing, the NSAICO conference observed that the potentials in the market are so huge that operators should take cognisance of all the segments of the informal sector and device peculiar ways to engage them and make them sign on to financial inclusion.

Rather than assume that the micro market segment have adequate knowledge of their products and services, operators they said should create improved and sustained education, awareness programme that will broaden their understanding of their services and improve on their level of financial literacy.

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