Insurance firms promise not to retrench staff
By ABDUL-KHALIQ OLALEKAN
The 58 Insurance firms across the country have promised not to retrench any of their staff members in a bid to cope with the current financial crisis affecting all sectors of the nation’s economy of which insurance is one.
The operators, who spoke to under the auspices of the Nigerian Insurers Association (NIA), while speaking at a press conference yesterday in Lagos, noted that even though some sectors are sacking workers to cope with the present economic reality, the sector felt retrenchment of workers will not change the current situation but instead, throwing more people into the already depressed labour market.
Outgoing Chairman, (NIA) Mr. Godwin Wiggle, disclosed that though, doing business under the present situation is challenging, insurers would continue to think out of the box to remain afloat.
He urged the government to assist the industry by enforcing compulsory insurance laws, stressing that relegating insurance as presently being practiced is inimical to the development of the economy.
According to him, insurance plays an important role in the economy, as it helps to reduce economic waste.
On the outcry by shareholders over non payment of dividends by some insurance firms, he said the operators are not happy that shareholders are not benefiting from their investments, adding that most insurers are unable to pay dividends due to stringent rules and difficult environment they operate on.
He lamented over the menace of fake insurance, stating that those buying fake insurance are procuring waste papers which are not tenable in times of mishaps.
Wiggle said the government is presently losing huge revenue to the menace of fake insurance, adding that counterfeiters do not pay tax from the money made from their illicit act.
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