fbpx

Nigerian Insurance Companies To Introduce Terrorism Cover

Nigerian Insurance Companies To Introduce Terrorism Cover

From ThisDay via AllAfrica

The Commissioner for Insurance, National Insurance Commission of Nigeria (NAICOM), Mr. Fola Daniel, has said that terrorism insurance would soon be introduced in the country.

According to him, insurance companies would soon come out with policies to cover terrorism insurance.

Economic Confidential quoted Daniel to have said this at a recent retreat in Uyo, Akwa Ibom State.

The NAICOM boss noted that insurance is dynamic, saying that there should be no area of risk that should be regarded as no go area in the business. He described terrorism as major challenge in the country.

“Two years ago, some foreign multinational began to add terrorism or kidnapping to their portfolio and Nigerian companies were not ready for it. This became an excuse to wanting to export 90 per cent of such a risk abroad.

“What we did at the commission was to call insurers and let them know that nothing is spectacular about kidnapping that you cannot have an endorsement that will enable you to introduce kidnapping to your portfolio and a few of the companies rose to the challenge and added it to their policies so there is no longer an excuse to take this business abroad,” he explained.

Continuing, he said the government can serve as reinsurers, citing the hurricane attack in the United States where insurers played their role but government paid heavily.

“If we don’t, one smart director will one day recommend that one special agency be set up for terrorism outside NEMA and insurers will complain that someone has taken over their business.

Read more at AllAfrica