Abuja – An insurance expert, Dr Sam Onyeka, has called for amendment of the current legal framework of the insurance industry in order to grow and boost the sector.
Onyeka told the News Agency of Nigeria (NAN) on Friday in Abuja, that the current legal framework had some impediments that hindered the smooth operation of the sector.
According to him, the current insurance legal framework ensures a uniform capital requirement for all operators in the market which is not very ideal.
He said that most countries of the world regulated insurance on the basis of risk and if the same was adopted in the country, it would help boost the country’s insurance sector.
He said, “ we want a situation where individual companies will be judged at their own levels and merit, and not on a general note.
“There is need to build skills in the industry as insurance business cannot be done without proper understanding of risk management.
“In the Nigeria insurance industry, we have not focused on development of skills.
“We need a legal framework that will make it compulsory for insurance companies to begin to hire actuaries whether you are doing life business or non life business.’’
Onyeka explained that the current framework did not allow the regulators in the industry to be independent in decision making.
“We need a framework that will give the regulators autonomy and independence because the Commissioner for Insurance still refers to the finance minister if the commission wants to take important decisions.
“And this method is very wrong because if one gives life, that person should also have the power to take life and that has been the argument.
“We want to take away all those obnoxious or restrictive rules in the insurance Act that makes it impossible for us to drive insurance the way it should be,’’ he said.
He noted that capacity building and more awareness on the importance of insurance was needed to be done as this would help create more jobs for and sensitise the Nigerian youths. (NAN)
Expert urges amendment of current insurance legal framework
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