General insurance Government As an Insurer

[Mataracy]

I will use Nigeria Insurance as a case study.

Insurance and reinsurance, from the pon of view of government control, are federal subject, although some state governments have their own insurance companies, by the ( National Insurance Commission) Federal Ministry of Finance.

As in any other economy, the role of the Nigerian government in the economic system is very extensive. Over the years the nation has evolved an economic system in which both private and state enterprises co-exist.

In the Nigerian scene amongst the reasons for government participation in insurance business ( as an insurer) could be mentioned; leadership role ; the desire to provide cover for risk for which private insurers lack the enthusiasm or expertise to venture into; control and state security; manpower development; provision of social security like health insurance, sickness/ accident insurance; local capacity utilization; conversation of foreign exchange; revenue drive, etc.

In recent times however, it could be said that the major reason for government's active involvement in insurance business is purely for revenue drive or profit motive. Insurance has become a profit earning business despite the enormous (big) risks associated with it.

Governments in developing economies do not often resist the temptation to join this quest for profit. In a federation like Nigeria, this is certainly so of the various state-owned companies established with guaranteed government patronage.

 

[btaliat]

Thanks for this information. I don't even knoe that governemnt also involves in insurance. I would have loved it if you even mentioned the name of government insurance company. I only know NICON which is the body that regulates the activites of the insurance companies in nigeria. Though I may be wrong.

 

[Mandy96]

Like seriously, are there really insurance companies owned by the government because it would have been better if there are some. Mainly, the premium will be reduced and more comfortable or affordable for the clients and the issue of policies will be bearable compared to the ones set by the private owners

 

[Mataracy]

Thanks for this information. I don't even knoe that governemnt also involves in insurance. I would have loved it if you even mentioned the name of government insurance company. I only know NICON which is the body that regulates the activites of the insurance companies in nigeria. Though I may be wrong.

You are correct about NICON.
The main issue that affects the industry is the unfair competitive advantage accorded to these state owned insurance companies by the government with the result that the private insurance sector share of the market is reduced drastically.
Perhaps , a fitting case illustration is the status of NICON and Nigeria Re in my he Nigerian insurance market.

 

[btaliat]

The fact is that it will even be better if governemnt has more of insurance companies to control. This will reduce the monopoly of private insurance companies this is not the only advantages, it will even provide employment for people, for instance, brokers. And the people will pay lesser premiums.

 

[Jamoflondon]

I am not sure about this but I have been wanting to ask about it, are there government owned insurance companies, probably in my country or other countries. Because the last time I checked, all the notable ones are owned by the private sector, which bring it to my thought to wonder

 

[Wisdom01]

Most of the government insurance company in my country are not active and I think they are the ones that provide cheap insurance premium cover since there is subsidy attached , compared to those private companies , the only problem is that most of them don't provide good service to the people insuring

 

[btaliat]

Sometimes, governemnt does make sure that they insure their workers especially at the federal level in to the health insurance scheme. It is not only the workers most time but also their family members, this will give them sense of belongings and surge to perform better while carrying out their functions

 

[Wisdom01]

I am not sure about this but I have been wanting to ask about it, are there government owned insurance companies, probably in my country or other countries. Because the last time I checked, all the notable ones are owned by the private sector, which bring it to my thought to wonder

There are government owned insurance company available in other countries too and they are common on mostly tier 1 countries like USA , uk and many others , but they have some criteria you must have followed before they could grant you an insurance policy to get protection cover to what you are actually insuring against

 

[Phabbyfundz]

every state or government of a region or geopolitical zone has the state's insurance regulator that oversees the affairs of insurance companies and their activities in that state. The government been a body elected by the people hopes to give the people the best quality of life they deserve and insurance is one of the ways to do that.

 

[Chibson]

Yeah definitely I have someone who is into government insurance and it comes with a whole lot of benefits. When you are a public servant, you are automatically entitled to be part of the government insurance scheme but you have to register which is absolutely free. It is mainly health insurance scheme.

 

[Alexandoy]

In the Philippines the only insurance of the government is the health insurance. It is called Philhealth that gives benefit to the seniors and other sectors like government workers and the indigents too. The insurance takes care of about 30% of the cost of hospitalization depending on the cases. It is a big help for the citizens.