Expert Suggests More Mergers Of Insurance Firms

The need to check some of the sharp practices in the industry has continued to attract attention.  Commenting on the issue in a chat with National Mirror, Insurance Consultant, Barrister Gbenga Tobe, stated that the best way to address the issue is to further reduce the number of insurance companies from the present 49 to say, 20
He explained that the present large number is still not good enough for the industry; adding that with fewer companies, rate-cutting will be eliminated.
He said he is not advocating for a deregistration but more mergers and equisitions which will lead to mega insurance companies that can compete anywhere in the world.
Tobe called on operators to close rank and adhere strictly to the rules of the business.  For instance, he said, “if all members of the Nigerian Insurance Association (NIA) take a decisive step to shun rate cutting, it will be eliminated once and for all.
He particularly called for merger so that Nigeria can attain the level of the developed world.  He said going by our current standard, there is no way any Nigeria insurance company can meet the rating of such global rating agencies like Standards and Poor and Fitch Rating Agencies.
Therefore, for Nigerian insurance company to get to that level, it would need to merge and recapitalize continually.