Worried by the global food crisis, the National Insurance Commission (NAICOM) has said it is working on measures to make agricultural Insurance a catalyst for food security.

Mr. Fola Daniel, Commissioner for Insurance said this at the Intercontinental WAPIC Insurance 50th anniversary lecture in Lagos.

He noted that the insurance industry would in the next few years increase its interest in rural insurance.

Said he: "The National Insurance Commission is going to show a special interest in agricultural insurance as a catalyst to food security and other agricultural materials needed for industrial production. This is why NAICOM is emphasizing the need for insurance companies to expand their scope of operation to the rural areas’.

"The evolving insurance industry is one that would thrive on knowledge. There is no doubt that the manpower in the sector requires the injection of new hands to drive its growth for expansion and relevance, which in essence, means that a lot of employment is going to be generated.

In addition to reducing the unemployment level, this will add a great value to the growth of the industry as fresh business ideas and new managerial skills will be introduced to the industry.
To be a catalyst to rapid economic development, insurance companies, he enjoined, should all times live up to their obligations to pay claims promptly. This is the only reason why an insurance company exists. The only means to sustain the industry and build the confidence and trust it needs to blossom is to ensure that genuine claims are not only paid but that they are paid promptly and to the satisfaction of policy holders.

He then called on insurers to sustain current progress in the industry, particularly its standing in the capital market.

"This performance indicates the renewed trust and confidence in the insurance industry. I use this opportunity to enjoin all the insurance practitioners to operate ethically and leverage on the public attention currently being focused on the industry," he said.

He noted that it is the desire of NAICOM, for any insurance company that operates in country, to be a model in the Insurance industry by operating ethically and carrying out it business in accordance with the provisions of the relevant insurance laws and regulation, stressing that the industry cannot afford to do anything different, and for the operators not to play as local champions but in the league of global emerging insurance market.

This new development includes the level of capitalization, the opportunities in the national economy given the population and size of the country, the new crop of high networth investors, the performance of insurance stocks at the capital market and the interest of foreign experts in the management of our insurance companies.

The renewed interest of banks in the insurance companies is a sign of good omen for the insurance industry. The issue of good corporate governance has almost become routine in the banking sector, but still novel in our industry, Mr. Daniel remarked, adding that this interaction is expected to rub-off on the practice and management of Insurance Institutions.