In a timely announcement, the Director General of Lagos State Safety Commission has this week announced that the Lagos State Government intends to enforce compulsory insurance on property owners, following a number of incidents.
In a previous article I mentioned the low-levels of insurance penetration in sub-Saharan Africa, with focus on Nigeria as the largest economy in the region, but very low uptake with a 0.3% penetration rate in the case of property insurance between 2013-2015.
Interestingly, compulsory insurance of buildings under construction and public buildings was previously introduced via the Insurance Act 2003 (Part XI) alongside five additional compulsory insurance categories but NAICOM (National Insurance Commission) has commented on a lack of compliance in this region.
According to the speech, collaboration between the Lagos State Government and NAICOM is key to introducing compliance with these requirements, in order to create a safer future for Lagos.
Lagos State Government has expressed its readiness to introduce compulsory insurance to owners of buildings across the State and also establish Safety Institute where stakeholders can be trained and certified.