The Commissioner for Insurance, Mr Sunday Thomas, has said insurance companies gave free strike, riot and civil commotion covers to the customers due to competition before the #EndSARS protests that led to looting and wanton destructions recently.
Going forward, he said, the commission would issue directives to ensure that such covers were appropriately underwritten as the recent losses would increase the claims record of the underwriting companies.
Thomas spoke while delivering the keynote address at the Chartered Insurance Institute of Nigeria’s 2020 insurance professionals forum in Abeokuta, Ogun State, on Thursday.
Industry professionals, traditional rulers and government representatives attended the event.
He said, “It is pertinent to note that insurance coverage for strike, riot and civil commotion clauses, which were redundant in the past and which by competition are mostly offered free of charge must now be adequately rated as an important product for the survival of Nigerian businesses.
“The commission will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums so that profitability can be guaranteed and claims are settled promptly without financial strain on the companies.”
The incidents from the protests and civil unrest had further reinforced the value and necessity of the insurance industry, he said.
The President, CIIN, Muftau Oyegunle, said this year’s theme, ‘The insurance industry: Defining the future’, brought extensive deliberation, the way forward for the insurance industry in a world that had been radically disrupted.
He said, “The insurance industry is going through profound change and this disruption is not just digital.
“Demanding customers, new competitors and constantly evolving challenges are driving the narrative for the future.
“No matter what technological advancement we adopt, if it does not translate to value for the customer, all the capital outlay would have been in vain.
“The task before us is to create entirely new set of products that inspire customer demand, anticipating and addressing customer needs and wants.
“These products must be simple and flexible enough for customers to evaluate, tailor and purchase through any channel.
“There is a need to offer holistic value proposition, one centered on the aspirations that really matter to consumers, including wellbeing, safety and reaching personal goals.”