Tuesday, 11 December 2012 00:00
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NIA bemoan Nigerians’ attitude to agricultural insurance

The new Chairman of Nigerian Insurers Association (NIA), Chief Remi Olowude has bemoaned attitude of Nigerians toward agricultural insurance.

Olowude, speaking during his acceptance speech at his investiture in Lagos blamed the lukewarm attitude of Nigerians as a result of low level of awareness of insurance in the country.

He described agricultural insurance as a financial tool that transfer production risks associated with farming to a third party via payment of a premium that reflects the true long term cost to the insurer assuming those risks. “Agricultural Insurance is a special line of property insurance applied to agricultural firms”, he added.

The Chairman suggested that there is need for the Federal Government to set-up national flood insurance programme to help mitigate losses that stem from flood disaster.

He also said that the programme has become necessary due to the flood disaster that ravaged virtually all states in the country where over 5,000 farmlands were washed away. He noted that presently, there is no flood rating guide in the country to help measure risks associated to flood.

The 20th Chairman of NIA assured that the association under his leadership would collaborate with the government and relevant organisations to promote insurance, adding that insurance awareness will be driven through sponsorship of insurance essay competition among schools, strengthening of Chartered Insurance Institute of Nigeria (CIIN) syllabus to raise esteemed professionals.

In the same vein, Chief Remi Olowude promised that veterans in the insurance industry will be call back so as to share in their experience and think together on how to promote insurance industry in Nigeria.

Commissioner for Insurance, Mr. Fola Daniel, who was represented by Deputy Commissioner Finance and Administration, Mr George Onekhena, urged the new leader of NIA to live up to the confidence reposed in him, adding that he has taken over the leadership of the association at a time when the government expects more from the industry.

Onekhena said, “The Chairman of the NIA has come at a time when the government is expecting more development in the insurance sector, he has come at a time when government wants insurance as a tool for job creation and a period when the industry should take its place in the scheme of things”.

He however called on underwriters to esteem the virtue of self-regulation, adding that the National Insurance Commission (NAICOM) dues would be made easy when the operators regulate their activities properly.

He reiterated that operators need to adhere to the rules of ‘No premium No Cover’, adding that the industry can never grow when it takes risks without payment of premium.