The National Council of Registered Insurance Brokers has said that the federal government is the biggest debtor of the insurance industry.
The Executive Director of Operations, Hallmark Micro Life Insurance Company, Mary Adeyanju confirmed this in Abuja.
She explained that as the greatest consumers of insurance, it wasn’t strange that the federal government was also the biggest debtor.
She, however, stated that the government had recently paid the sum of N9.2bn as premium to the insurance sector, adding that the outstanding debt was as a result of poor economic conditions which are adversely affecting government revenue.
Adeyanju made this disclosure at a media parley organised by the NCRIB in Abuja.
She said, “The truth is that the federal government is the biggest debtor to this industry. Obviously if you are the greatest consumer of the product, naturally you will also the biggest debtor to that product.
“The federal government has supported insurance like every other country. The economy has not being doing so well and so the government hasn’t been spending in the area of insurance.
“Recently, the federal government paid N9.2bn as premium for life policies and the rest of them. We still have a lot of outstanding from the non-life sector.
“We know that the economy is not very buoyant right now, so we are praying for the federal government of this country that the economy picks up and we are also trying to contribute our own part to see that we put in some form of traction into the economy from the sector we oversee so that the government is also enabled to pick up their bills especially from the insurance perspective.”
As part of its efforts to ensure the widespread adoption of insurance across the country, the NCRIB, she said, has been collaborating with regulators within and outside the sector to promote greater awareness of insurance services.
“There have been collaborations for some time, our regulator National Insurance Commission has been collaborating with Nigerian Insurers Association to help rebrand awareness.
“So that campaign has been on for two to three years and we are hoping that we can still do a whole lot more, there other collaborations with the Federal Road safety Corps, Fire Service and so on. So we are trying to see how we can have more impact.
“We don’t seem to have achieved as much as we should, but we are hoping that soon, the efforts that have been put into rebranding our image will become visible.”
On her part, the President of the NCRIB, Bola Onigbogi appealed to the federal government to encourage Ministries, Agencies and Departments to pay premiums in order to support the growth of the sector.