The National Insurance Commission (NAICOM) has signed some agreements with the Minister of Interior, Mr Olubunmi Tunji-Ojo, to address bottlenecks around travel insurance and other related matters in the country.
The deals were sealed during a courtesy visit by the Commissioner for Insurance, Mr Olusegun Ayo Omosehin, to the Ministry of Interior in Abuja on Tuesday.
The initiative is expected to alleviate the financial burden on taxpayers and enhance the country’s economic stability.
Among the issues addressed in the agreement was repatriation cost mitigation, in which the two parties agreed on the implementation of travel insurance to cover repatriation expenses, particularly for individuals entering Nigeria on short-stay visas.
The government agencies identified significant taxpayer expenses related to repatriation, estimated at billions of Naira annually, and proposed a strategic solution.
Both the interior minister and insurance commissioner also emphasised the need for the government to transfer certain liabilities to insurance companies, creating more efficient and cost-effective mechanisms for managing national risks. The innovative approach is expected to drive growth and development in the insurance sector.
They also agreed on establishment of a technical working group to explore the feasibility of a comprehensive travel/repatriation insurance policy, develop a centralised material management (CMA) system, and facilitate inter-agency data synchronisation.
“This working group will drive the implementation of these initiatives and ensure their successful rollout”, the commissioner stated.
At the meeting, NAICOM reaffirmed its commitment to monitoring insurance operators through a sophisticated solvency control and intervention framework, ensuring financial stability and protecting consumer interests.
Also, a critical initiative was proposed to enhance data verification processes, with the National Identity Management Commission (NIMC) playing a central role in creating a robust, single-source verification system for the insurance sector.
The parties noted that this would significantly reduce fraud and enhance the overall efficiency of the insurance industry.