NIGERIAN Insurance Association (NIA) is not happy with the slow growth of the nation's insurance industry.

Subsequently, it is anxiously seeking the cooperation of the National Assembly with regards to the review of laws affecting the growth and development of Insurance business.

Speaking at an interactive session with the Senate Committee on Banking, Insurance and other financial institutions in Abuja recently, Chairman of NIA, MR Wole Oshin expressed optimism that the session would offer the insurance subsection solution to the problems facing the industry.

This information was contained in the latest edition of the NIA quarterly News letter.

Represented by the Deputy Chairman, Mr. O.O. Oladipo-Ajayi, the NIA boss thanked the organizers, assuring them of good working relationship between the industry and the lawmakers.

"We thank the organizers of this interactive session for the opportunity to be part of this effort to cross-fertilize ideas and find a lasting solution to the problems faced by the insurance industry especially with regard to the operation of the law and its impact on business," Oshin said.

He recalled that the insurance industry had not only evolved over the last 100 years but had continued to respond to the dynamics of economic development by supporting government in its drive to strengthen the economy.

The Chairman noted that while insurance penetration is increasing in similar economies, insurance penetration in Nigeria had decreased in the past 10 years, from 0.8 per cent in 1999 to 0.6 per cent in 2007 largely due to the impact of the following legislations: National health insurance Act 1999 which transferred a traditional part of life insurance business to the HMO's and pension Reform Act 2004 which transferred pension business from insurers to Pension Fund Administrators and Pension Fund Custodians.

Others are companies income Tax 2007 which is discriminating and retrogressive in all ramifications (all other financial services were granted concessions); imposes a heavy tax burden with the result that insurance reserves are taxed and claims are capped. The employees compensation Bill currently being promoted by the Nigerian Social Insurance Trust Fund (NISTF) to remove workmen compensation fro the parview of insurance.

Another issue agitating the mind of NIA is the non enforcement of the law on compulsory insurance of the public buildings and buildings under construction spelt out in section 64 and 56 of insurance Act 2003.

Also, non enforcement of the law on insurance of Marine imports as enshrined in section 67 of insurance Act 2007, among others.

On the way forward for the insurance industry, the NIA chairman, Mr. Oshin called for urgent review of the companies income tax. (Amendment) Act 2007 which is inimical to the development of insurance business. This is even as he harped on the need for the government to comply with compulsory insurances, especially the insurance of public buildings under construction.

He opined that the Employee compensation Bill currently in the National Assembly is not a solution to compensation for workplace injuries, diseases and death. The chairman rather suggested that the provision of the existing workman compensation Act 2004 should be amended for wider coverage and compiled with.

In addition, the NIA boss recommended that the statutory deposit by new company should be pegged at 50 per cent of the paid-up share capital, while existing insurer should deposit only 10 per cent of the capital base, under the insurance Act 2003.

The interest payable in statutory deposit should be invested by the Central Bank of Nigeria (CBN) in Federal Government Bonds or prime Monetary Rate whichever is higher, to attract reasonable guaranteed returns as against the present practice.

He further stressed the need for Government to make adequate budgetary provisions for payment of insurance premium.

The Senate Committee Chairman on banking, insurance and other financial institutions, Sen. Nkechi Nwaogu had early this year given an assurance that the on-going review of insurance Act 2003 would be completed and released before the end of 2010.

Sen. Nwaogu however indicated that official bureaucracy was hindering final completion of legislative work on the legal work document.

She was optimistic that members of committee would do a thorough job that would stand the text of time.