Risks underwriting companies in the country under the auspices of the Nigerian Insurers Association (NIA),  have said that  they  will  henceforth  not pay more than N15,000 as bidding fee for any government business.  

This resolution was made just as the association said that in the next two years, it would redirect its efforts towards building a strong relationship with the three arms of government in order  to earn  the confidence of all stakeholders.

The immediate past Chairman of the association, Reverend Olusola Ladipo-Ajayi made the resolution of the association known in his valedictory speech during the 41st Annual General Meeting of the association in Lagos recently.

According to him, the era when insurance companies throw away millions of Naira as bidding fees to indicate their readiness to render risks protection services to  government ministries, departments and agencies is over.

He said members of the association have resolved never to pay more than N15,000 as bidding fees for government businesses, adding that the operators have all undertaken to abide by this resolution.
“We will work and act with one voice in all cases going forward.  For example in the case of bidding fees for government businesses, we have passed a resolution that no insurance company should pay more than N15,000 in respect of any bid.  The circular to this effect would soon be sent to all our members and we expect all insurance companies to abide by this decision,” Ladipo-Ajayi said.

On the above subject matter, the Director-General of the association, Mr. Sunday Thomas in his report to the Governing Council of the association explained that the association wrote to NIMASA, Nigerian College of Aviation Technology (NCAT) and Lagos State Pensions Commission in respect of their demand for payment of bidding fees as a condition precedent for selection of underwriters.

“Some level of success has been achieved as the Bureau of Public Procurement (BPP) has agreed to intervene where the fees demanded were considered excessive,” Thomas stated.

Meanwhile the new chairman of the association, Mr. Remi Olowude said he would expend energy to ensure that the association wins the support and respect of all stakeholders in the Nigerian economy in the next two years.

According to him, he would strive to improve on the quality of insurance education and practice and build a better platform of communication between the association and all member-companies.

The new president said he would work with his predecessors in office to move the association to the next level,  while improving relationship between the association and relevant regulatory agencies in the country,  including the National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC), National Pension Commission (PenCom) and the Central Bank of Nigeria (CBN).

In addition, he said,  the association would be collaborating with other trade groups in the economy with a view to deepening insurance penetration in the country,  while promoting ethical standards among member companies and the entire insurance industry to ensure that the industry regains respect in the economy.

NIA is an association representing the interest of insurance and reinsurance companies operating in the Nigerian insurance market.

Source: ThisDay/Nnamdi Duru