National Wire About Nigerians, Nigerian Business and Other Stories
The Central Bank ofNigeria (CBN) has disclosed plans of positioning the Nigerian insuranceindustry among the 15 largest in the world come year 2020.
The apex bank said a lot of transformation was going on in the sector, as enshrined in itsFinancial System Stability 2020 (FSS 2020) aimed at revamping the sector,adding that it was working with the National Insurance Commission to achieve this feat.
The Head, Insurance Sector FSS 2020, CBN, MrChristian Muo in Sokoto recently, regretted that insurance contribution to GDPwas still abysmally low adding that this calls for urgent transformation of thesector.
Consequently, he disclosed that the apex bank wasworking to ensure that the sector becomes the 15 largest insurance sector inthe world in premium generation by 2020. “With FSS 2020 insurance business willchange”, he assured.”
Proffering solution on how to revamp thesector, Muo stated that there was need to first and foremost grant autonomy to the sector’s regulatory body, the NAICOM adding that the commission should be empowered such that it can implement and enforcecompliance of various existing insurance laws.
Government, he said, should live up to its expectation by ensuring that itsproperties/buildings are all insured even as he advocated need forrecapitalization of insurance firms.
Speaking on thesuccess story of the FSS 2020, Muo assured that implementation of the projecthas guaranteed reduction in insurance gap to 40 per cent in 2016 from 94 percent in 2007. “Since 2008 till now, which is about eight years, we are now toldthat we have bridged that gap to about 40 percent. That is encouraging becausethere has been a lot of reforms that are taking place and these are the effectsof the FSS 2020.
