Brokers counsel FG on disaster management
The Nigerian Council of Registered Insurance Brokers (NCRIB) has called on the Federal Government to give priority attention to insurance when it comes to disaster management in the country.
This call was made by the President of the NCRIB, Ayodapo Shoderu during a courtesy visit by members of the Council’s management to the FCT Emergency Management Agency in Abuja, recently.
Shoderu stated that the government’s efforts in disaster management would be more result oriented if insurance, which is one of the most potent risk management mechanisms, is factored into disaster management plans at all levels of government in the country.
He said that historically insurance has been regarded as the saviour of mankind, but regretfully its roles have not be adequately recognised in the scheme of things, especially in disaster management.
Shoderu said “the practice of setting aside budgetary allocations to disaster management is commendable, but it makes better sense for government to subscribe to insurance for the purpose of compensation from which victims of disasters could be succoured in the country.”
The NCRIB boss commended the Federal Government for appointing the current Director General of FEMA, Abass Idriss, to head the Agency, noting that his robust pedigree in insurance and risk/disaster management would be assets for the agency.
Responding, FEMA’s Director General highlighted the achievements of the agency in disaster management and control within the Federal Capital Territory since it was established.
Abass assured that the agency has recognised the importance of insurance to disaster management and was prepared to ensure the engagement and synergy of relevant stakeholders for service delivery.
Key elements of disaster management are prevention, mitigation, preparedness, response and relief, rehabilitation. The various stakeholders in the process of disaster mitigation are policy makers, decision makers, administration, professionals, professional institutions, R&D institutions, financial institutions, insurance sector, community, NGOs and the common man. Insurance has played a very important role.
The advanced countries have therefore developed the insurance system and made it effective and mandatory – as a result the loss of lives and property is comparatively less.
Insurance is a valuable risk-financing tool. While few organisations have the reserves or funds necessary to take on the risk themselves and pay the total costs following a loss, not every one can afford to do that.