Underwriters insure 65,000 marine policies … NIA
Insurance companies say they have reduced fake marine insurance certificates at the nation’s seaports by insuring 65,000 policies.
According to figures obtained from the Nigerian Insurers Association, this was made possible through the Nigerian Insurance Industry Database.
A report by the association said, “The marine module has been running and member companies are daily uploading on the platform. At the end of May, 33 member-companies have uploaded 65,000 marine policies.”
The Chairman, NIA, Mr. Eddie Efekoha, who noted that the NIID had become operational since 2012, said that it had continued to record resounding success, especially in the area of providing online solution in eliminating fake insurance certificates from the market, and verification of insurance documents.
According to him, the platform is undergoing continuous enhancement to address some of the challenges thrown up with its implementation.
The association reported that the expectations of the operators in the nearest future were that the NIID would be fully integrated with all government agencies’ portals for real-time verification, and thereby becoming an indispensable tool in carrying out their statutory functions and processes.
It listed some of the challenges being faced in the business as observed by marine offices committee of the NIA to include unscientific rating in marine hull underwriting.
Other challenges were the low knowledge of marine insurance among insurers; importation of extraneous terms and conditions said to be eroding the specialty nature of marine insurance; and generally low concerns for inspection and survey of vessels prior to commencement of cover, among others.
The NIA also observed that there was an increase in passenger vessels requiring higher liabilities; global market rate was declining amid increasing loss ratio; there was a dramatic increase in foreign currency, exchange rate increase affecting profitability as well as spare part purchases from abroad increasing repair costs; just as brokers were demanding replacement value.