Local Content: Insurers Must come up with strategies …NCDMB
L- R: The Deputy Commissioner, (Technical) NAICOM, Sunday Thomas, Deputy Commissioner (Finance & Administration) Mr. George Oneknena, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, the Commissioner for Insurance, NAICOM, Mohammed Kari, the President, Nigeria Council of Registered Insurance Brokers (NCRIB), Mr Shola Tinubu, the Chairman, Nigeria Insurers Association (NIA) Mr Eddie Efekoha and other CEOs of insurance firms during November edition of Insurers Committee meeting held in Lagos.
Worried by insurance industry dearth of capacities to underwrite big risks, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has urged the sector to think of strategies that will enable it surmount this and other numerous challenges hindering the sector.
This, according to him would present opportunities for growth of insurance industry. “Although, there are challenges militating against the industry such as lack of capacity to undertake big ticket transactions like provision of brokerage services of insurance covers for projects, the size of $3 billion for example. There are several modalities that could be adopted to surmount this challenge. And that is the challenge I throw back”, he said.
Dearth of capacities to undertake big transactions has over the years been hindering insurance industry from participating optimally in underwriting risks emanating from oil and gas business.
Speaking during the November edition of Insurers Committee meeting in Lagos, Wabote noted that a10-year transformation blueprint has been developed adding that it’s target was to achieve 70 per cent value retention from currently 26 per cent within the next 10 year, creating 300,000 direct jobs and retaining over $14 billion income out of the $20 billion spent yearly on oil and gas industry.
He noted that to drive home Nigeria’s, a10-year transformation road map which included technical capability development, compliance and enforcement, enabling business environment among others has been developed.
Wabote added that the plan sought to increase income to the Gross Domestic Products and facilitation of Nigeria’s goods and services to regional markets.
He said, “We have sectoral working groups within the Nigerian local content including banking, insurance and others. And these teams of experts within their sectors formulate the strategy with which they engage the board for implementation. The insurance industry should also consolidate on joint partnership or venture with local and international outfits because they can’t do it alone.”