Governor of Lagos State Babtunde Fashola has urged Insurance firms to woo traders in orrder to ensure the penetration of insurance companies into the market for the growth of the economy. Speaking while inaugurating NEM Insurance Plc Head Office in Lagos, the governor stated this would be of immense benefit to traders whose goods were often lost to fire outbreaks in the market. Represented by the Commissioner for Commerce and Industry, Mrs. Olusola Owuru, the governor stated the increasing cases of fire in markets were of great concern to the government. He stated fire victims always fall- back on the government for assistance, which should not be so. "We want the insurance industry to take over and actualise the objectives they were established to achieve,’" Fashola stated. The Commissioner for Insurance, Mr. Fola Daniel stated the Nigeria Insurance Commission (NAICOM) would continuously strive for positive transformation in the industry, even if it would inflict temporary pains on some insurers. As stated by the Commissioner, the country's insurance industry needs rapid transformation. "I am happy that references were made to insurance industry in other domains such as South Africa and United Kingdom that contributed 15 per cent and more to their Gross Domestic Product (GDP) but in Nigeria insurance industry only contributes less tha one per cent to the GDP. These calls for all hands to be on deck to enable the industry occupy its proper position in the financial sestor. We should not be referred to as 'Poor Cousins' of the banking sector," he stated. Daniel stated the state of financial assets of many insurance companies was causing great concern to the commission. "Ficial asset of many insurance companies is of great concern to us because policy holders could call for settlement anytime," he stated. As stated by the commissioner, a high portion of insurance holdings in assets that cannot generate immediate cash adversely impact liquidity position. "So we need to have regulations that limit the amount of buildings and lands an insurance company can invest in. We are worried about over investment in real estate as this may run down insurance industry. The strength of any insurance company is in its liquidity," he stressed. He congratulated the management of the company on building a befitting edifice for its operations, adding that it signified growth and accomplishment. The Chairman of NEM Insurance Plc, Mr. Adewale Telumo, stated the edifice was constructed to enable the company become a leading insurance firm in the country. He stated the company’s performance had been on the upswing, with its gross premium which was N853 million in 2006 rising to N8.9 billion in 2013. "The profit after tax which stood at a meager N13.6 million in 2006 rose to N544 million in 2013. A total claim of N192 million was paid in 2006 while N3.1 billion was paid in 2013," he also stated.
