Making a presentation in Sokoto at the CBN 23rd Seminar for Finance Correspondents and Business Editors, the Head, Insurance Sector FSS 2020, CBN, Christian Muo regretted that insurance contribution to GDP was still abysmally low adding that that called for urgent transformation of the sector.
One key proffered solution on how to revamp the sector, the Head, Insurance Sector FSS 2020 said is that there is need first and foremost to grant autonomy to the sectors regulatory body, the NAICOM
Muo pointed out that NAICOM should be empowered such that it can implement and enforce compliance of various existing insurance laws.
Government; he said, should live up its expectation by ensuring that its properties/buildings are all insured even as he advocated need for recapitalization of insurance firms.
He disclosed that Central Bank of Nigeria (CBN) through FSS2020 plans to collaborate with the National Insurance Commissions (NAICOM)to repositioning the Nigerian insurance industry among the 15 largest in the world comes the year 2020.
The apex said a lot of transformation was going on in the sector, as enshrined in its Financial System Stability 2020 (FSS 2020) aimed at revamping the sector, adding that it was working with the NAICOM to ensure it achieve the feat.
Consequently, he disclosed that the apex is working to ensure that the sector become the 15 largest insurance sector of the world in premium generation by 2020. ” With FSS 2020 insurance business will change”, he assured.
Speaking further on the success story of the FSS 2020, Muo assured that implementation of the project has guaranteed reduction in insurance gap to 40 per cent in 2016 from 94 per cent in 2007.
“Since 2008 till now, which is about 8 years, we are now told that we have bridged that gap to about 40 percent. That is encouraging because there has been a lot of reforms that are taking place and these are the effects of the FSS 2020.
We will keep pressuring NAICOM and telling them this is what to do to get it right.”