‘Price should not be only basis for competition’
THE Managing Director/CEO of Law Union & Rock Insurance Plc, Jide Orimolade, has said that price should not be the only basis for competition as this has led to intense price war which has invariably robbed the industry of huge amount of premium yearly.
Speaking during a courtesy visit to the new Commissioner for Insurance, Mohammed Kari on his appointment, while congratulating him, he said his “appointment attests to his hard work, diligence and passion in contributing towards the growth and progress of the Nigerian insurance industry”.
Specifically, he said insurance companies need to “focus on creating s for customers and adopt risk-based pricing rather that rate-cutting. Also, there is need for product innovation, increase in awareness as well as build trust and confidence in the customers by keeping the ultimate promise of prompt claim settlement”.
He expressed confidence that the new NAICOM chief will drive more positive reforms in the industry and consolidate on the achievements of the former Commissioner, Fola Daniel”.
Orimolade bared his mind on other issues in the insurance industry which the regulators should look into or continue to improve upon, major of which include rate-cutting, statutory deposits with CBN, enforcement of compulsory insurances and awareness. On the issue of rate-cutting, he said On the issue of statutory deposit with the CBN, he said “it will be nice if the new Commissioner could push for improved interest rate than what currently obtains.
On the compulsory insurance products, Orimolade lauded the efforts of the Commission and requested for “increased enforcement drive and suggested the setup of an Insurance Task Force by the Commission in conjunction with other stakeholders to further improve on the level of compliance”. He said he will further engage the Commission on this to drive growth of the industry.