Operators to introduce terrorism insurance

Some insurance firms have expressed their intention to introduce policies to protect citizens against terrorism and political violence.

A statement on Friday disclosed the firms’ resolve during a day seminar organised by FBN Insurance Brokers and Continental Reinsurance Plc with the collaboration of UIB Group

The Acting Managing Director and Chief Executive Officer, FBN Insurance Brokers,  Fidelis Ojeah, said what they were doing was to be at the forefront of human capital development and providing the knowledge foundation for people to understand and appreciate violence insurance as emerging risk in our environment.

He said, “This is an emerging risk and we want to make sure our people understand it to be able to mitigate the risk because information is necessary.”

Ojeah noted that this risk used to be excluded from policies, but the firms were now offering it at low prices.

He said, “We are selling it at a low price because it is still new, and so that we can build the capacity today and going forward we can be there to support victims in the event of loss.”

According to him, events in the last three years in the Niger Delta where some people got frustrated, there was regression, militancy, as well as bomb explosions in Bayelsa and Rivers were clear signals of troubles.

He said, “Bombing of the police headquarters; bombings in many parts of the North and other terrorist attacks here and there are signalling that we must begin to build the capacity now to enable us plan on how to mitigate it.”

The Executive Director, Continental Reinsurance Plc, Lawrence Nazare, said that as the largest private reinsurer in Nigeria, it believed that there were certain risks that it should protect.

He said this influenced its decision to partner with FBN Insurance Brokers to bring to understanding the emerging risk of terrorism and violent insurance, which had been excluded from the normal policies.

He said, “We believe we must not have a risk that has got no cover in the market so we are trying to provide solution. We know that at the end of the day, there will be commercial value for Continental Re, there will be commercial value for FBN and other stakeholders.”

Source: Punch/Nike Popoola