The Head of Market Development, National Insurance Commission (NAICOM), Mr. Adeyemi Abubakar says  “the very low acceptance of Insurance Institutions in Nigeria today is largely due to ignorance on the part of the consumers and the general public. This is further aggravated by sheer lack of special purpose machinery for the continuous enlightenment campaign to the members of the general public. In view of the above, the strategic initiatives for Insurance Market Development were considered in line with the Commission laws, mandates and responsibilities.”

Adeyemi who made this position in his paper titled “Market Development Initiatives Of The Commission, The Role Of The Media”, said “Nigeria has an estimated population of about 200 million and majority of this number are living below the poverty line. Evidently, such class of people can hardly afford insurance services and as such remain largely uninsured against any form of disaster. The Nigerian development plan vision 2020 described the Nigerian insurance sector as “a grossly untapped opportunity” with low market penetration. Several reasons have been adduced for poor insurance penetration in Nigeria ranging from our peculiar market environment, limited public awareness, negative public perception by those who are aware of insurance.”

He said “this situational analysis culminated in identification of the Commission’s strategic goals aimed at consolidating on the milestones achieved and to move the industry to greater heights. The strategic goals identified are Safety and Soundness of Insurance Institutions, Stability of the Insurance Sector, Optimal Insurance Market Development, Adequate Protection of Policyholders and Public Interest, Trust and Confidence in the Commission, Regulatory Effectiveness and Prompt payment of claims.

The strategy adopted has been to carry out Sensitization and awareness programs of NAICOM functions and Insurance business to the general public within the states and building confidence and promoting public understanding on insurance mechanism.

He said “Effective Consumer Protection and Education build Consumer Trust and Confidence. Consumer Trust builds Market Growth. Insurance Market Growth generates savings, investment and employment. Prompt claims payment will promote public confidence.