Dearth Of Professionals In Marine Insurance Costs Sector N50bn Annually
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The insurance industry is deprived of over N50 billion yearly due to dearth of professionals in marine business.
It Was gathered that there is reduced knowledge of marine insurance amongst insurers, paving way for unethical practices and low profitability in the business.
According to a report by Marine Office Committee of the Nigerian Insurers Association (NIA) there is an urgent need to train dedicated staff continuously on special risks especially marine.
The committee noted that there is presently dwindling knowledge of marine insurance in the market, adding that staff mobility often disrupts staff knowledge and intrudes continuity of designated activities.
On effects of the challenge on marine business, the committee noted that there is presently low concern for inspection and survey of vessels by insurers prior to commencement of cover.
It also maintained that there is uncoordinated rate of “fly by night” firms which dictate the terms in the business, adding that unprofessionalism also pushes underwriters to accept requests to plunder or delete important terms and conditions in marine business
According to the committee, operators engage in importation of extraneous terms, which erode the specialty nature of marine insurance.
Hence, to uphold high professional standards, they recommended that underwriters must relinquish their interest in loss adjusting; brokerage; loss assessing and pre-loss survey firms.
According to the Fire Office Committee, the relinquishing of interest by underwriters will pave way for excellent corporate governance.
The committee also advocated the need for companies to entrench good internal controls; effective risk management and strong corporate governance, stressing that firms with the aforesaid are more resilient to turbulent financial conditions than poorly managed institutions.
It called on boards and senior management of underwriting firms to ensure their companies operate in accordance with sound business and financial practices.
