Nigeria: Regulator banks on takaful to increase market penetration
Source: Middle East Insurance Review | Dec 2017
Islamic insurance would solve the challenge of public apathy to insurance, arising from religious and cultural beliefs, especially in the northern parts of Nigeria, Commissioner for Insurance Mohammed Kari has said.
He said attempts by the National Insurance Commission (NAICOM) and insurance operators to penetrate markets in the north with conventional insurance products have not yielded much result due to the challenges, according to a report in The Nation.
He said that compulsory classes of insurance are still being resisted by both government and people, especially in the northern parts which are dominated by Muslims.
He said that in recognition of the public apathy towards insurance, the Commission, in line with the desire to deepen insurance penetration in the country, developed a medium-term initiative code-named Market Development and Restructuring Initiative, to amongst others, promote public understanding and confidence in the insurance industry.
While some success is being achieved gradually in this regard, the Commission introduced takaful and micro-insurance products in the country in an attempt to reach the segment of the market that is uncomfortable with conventional insurance products. NAICOM has to date licensed two takaful companies to operate in the country. M