As insurance regulator and operators renew their interest in seeing the long awaited Consolidated Insurance Bill passed into law, stakeholders have advised insurers not to leave anything undone, regarding the push for timely presentation of the bill to the president. Ebere Nwoji presents their view
Recent statement by the Nigerian Insurers Association (NIA) that it would collaborate with the National Insurance Commission (NAICOM) to finalise issues surrounding the signing into law of the consolidated insurance bill is a cheering news and a development which reinvigorates hope of operators on better days ahead for the insurance sector in Nigeria.
A cheering news because the insurance bill has been long overdue for assent by the federal government having been on the law makers' table since 2010.
By all parameter of measurement, the prevailing insurance Act 2003 is now too moribund to guide 21 century insurance sector in the present Nigeria, hence the need to enthrone the regime of a new insurance Act.
Failure by the former President Muhammadu Buhari to assent to the insurance bill before his exit from office was one of the worst regrets of insurance sector operators and stake holders .
This is despite efforts made by the insurers to get the bill signed before the exit of the former President.
But during a recent visit by NIA delegation led by its in -coming Chairman, Mr Kunle Ahmed to the new Insurance Commissioner, Mr Ayo Omosehin, and his management team, the duo agreed to collaborate to see that the present regime of Bola Ahmed Tinubu would not overlook the bill as did the former regime.
During the meeting, the NIA in-coming Chairman emphasised the importance of initiating the implementation of the 10-year strategic plan and finalising the consolidated insurance bill.
Observers' views
Insurance sector observers and stakeholders said both the operators and regulator NAICOM should this time use every connection at their disposal to ensure that everything needed to be done to ensure that the consolidated insurance bill secured presidential assent is done. The observers said with the Omosehin as the insurance commissioner there is hope of getting things done positively regarding pushing for the presidential assent to the bill.
This is because after the failure of the former President to assent to the bill before his exit, Omosehin was one of the industry leaders who stood up for fresh effort to get the 10th National Assembly attend to the bill re presented to them by the insurers.
Omosehin as the NIA Chairman then, led leadership of NIA to meet the Chairman of House Committee on Insurance and Actuarial Matters of the House of Representatives Hon. Ahmed Jaha, to seek support for the Consolidated Insurance Industry Bill.
During the visit, Omosehin congratulated Jaha for his appointment as Chairman of House Committee on Insurance and Actuarial Matters and craved more support, especially in ensuring that the Consolidated Insurance Industry Bill, received the needed attention that would lead to its passage into an Act.
Now that Omosehin has assumed office as commissioner for Insurance and federal government adviser on insurance matters all eyes are on him to lead the way in ensuring that law makers do every necessary readings on the bill and ensure its timely presentation to President Tinubu at least before the expiration of his first tenure in office.
Omosehin has been advised by the industry analysts to discover what should have been done to ensure that former President Muhammadu Buhari assented to the bill before his exit but was not done and try to do them to ensure that the bill is presented to the president during this his first tenure in office.
Thomas's regret
The immediate passed insurance commissioner, Mr Sunday Thomas had expressed regrets over non passage of the bill but was optimistic over the passage of the reintroduced 2020 Consolidated Insurance Bill by the 10th National Assembly and its assent by President Bola Tinubu.
Thomas had at the 2023 retreat for journalists in Uyo, Akwa Ibom State
explained that the consolidated insurance bill was unfortunately not assented to by former President Muhammadu Buhari before he left because it got to him late.
"Of course there are procedures and processes for such things. Though we are not going to start again from the beginning, the National Assembly is now looking at it.
"The bill has now gone through the first reading, and we are following up to see that it is concluded as soon as possible. The industry had a very high hope that the last administration was going to conclude on the bill, but that didn't happen. We have not given up on our hope, knowing that the bill is a game changer because of a lot that is in it and its importance to the sector," he said.
The Amended bill
One of the amendments the insurers pushed to the bill is introduction of Risk Based Capital describing it as the right capital model for the insurance industry in order to align the Nigerian insurance market with international best practice and reposition the industry for accelerated growth and development.
The Consolidated Insurance Bill has been on the table of lawmakers for over 12 years waiting for passage but during the tenure of the immediate past administration it was reviewed with many grey areas corrected. It also successfully passed through readings in the upper and lower chambers but was not timely presented for presidential assent.
The 2020 consolidated insurance bill when passed into law, is expected to effect a lot of changes in the insurance sector's narrative.
Indeed, the bill holds a lot for the industry as expectations are high that the long awaited bill when signed into law would redefine the industry, strengthen it from the weaknesses of the moribund insurance Act 2003 and place the industry on the global best practices pedestal. Insurers believe this and have thus continued to pursue the passage of the bill with vigor till the end of Buhari's regime without achieving their target.
Former President of Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Shola Tinubu had said that review of the insurance act was of utmost important to the insurance as the future of the industry lies much there.
According to him, the prevailing law has a lot of weaknesses and can no longer drive the industry in the present century.
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Speaking, a former Chairman NIA and Group Managing Director Hallmark Holding Company, Eddie Efekoha noted that weakness of the existing law was part of the industry's problem and has been encouraging some of the vices happening in the industry.
One of these, according to him, is the low amount of fine to be paid by offenders of some of the laws such as third party insurance or compulsory builders insurance, adding that it does not encourage compliance.
Recommendations
One of the recommendations of the industry operators in the bill is the reintroduction of Risk Based Supervision capital model, a model which the insurers described as the right capital model for the insurance industry in order to align the industry with international best practices and reposition it for accelerated growth and development.
Risk based capital is a method of measuring the minimum amount of capital appropriate for a reporting entity to support its overall business operations in consideration of its size and risk profile.
Another recommendation of insurers in the bill is N5 million fine for fake insurance certificate perpetrators.
QUOTE
"The Consolidated Insurance Bill has been on the table of lawmakers for over 12 years waiting for passage but during the tenure of the immediate past administration it was reviewed with many grey areas corrected. It also successfully passed through readings in the upper and lower chambers but was not timely presented for presidential assent.
The 2020 consolidated insurance bill when passed into law, is expected to effect a lot of changes in the insurance sector's narrative."
