The Nigerian Insurers Association (NIA) has lamented over the menace of fake insurance, stating that those buying fake insurance are procuring waste papers which are not tenable in times of mishaps.
Speaking at a press briefing in Lagos, the NIA chairman, Godwin Wiggle, decried the menace of fake insurance which he noted contributes negatively to the business of the industry.
He stated that the government loses huge revenue through fake insurance, as the perpetrators do not pay tax from their illicit dealings.
Wiggle therefore urged government to assist stakeholders by enforcing compulsory insurance laws, stressing that relegating insurance as presently being practiced is inimical to the development of the economy.
According to him, insurance plays an important role in the economy, and helps to reduce economic waste
On his achievement for the past two years, Wiggle who leaves office this week, said: “Looking back at the agenda we set for ourselves at the beginning of our tenure, we want to say that we have made some modest achievements during the period.
“On the relationship with NAICOM, we have continued to engage the Commission on issues that affect the business of our members and this will continue as issues may arise”.
“There is also an on-going initiative to improve market conduct and market discipline” he stated.
He equally maintained that the association had continued to engage other regulators on issues that border on their oversight activities on member companies.
“On the relationship between the Association and other regulatory bodies, the Association has continued to engage other regulators such as SEC, FIRS, PENCOM and NSE on issues bordering on the effect of their oversight activities on member companies”, he noted.
He also disclosed that the Energy and Allied Insurance Pool (EAIPN) has taken off and 20 companies had subscribed to the pool.
To ensure high performance and leverage on international experience, African Re has been appointed as the manager to the pool.
The outgoing chairman also noted that, while prevailing economic challenges make insurance business more demanding, insurers would continue to think out of the box to remain afloat.
Speaking on shareholders’ complaints of non-payment of dividend by some insurance firms, Wiggle attributed this to unfavourable government policies and difficult operating environment confronting the industry.