Lack of confidence in the ability of insurers’ umbrella body to make good its promise on market agreement may have hampered the proper implementation of the proposed Nigerian Insurance Industry Database (NIID).

NIID is a solution being put in place by the Nigerian Insurers Association (NIA) for the nation’s insurance industry expected to generate a comprehensive database for the sector.

But, indications emerged that this good intention of NIA does not have the support of some operators which may lead to its failure  as the required data to make it work is not forthcoming.

Although, NIA has claimed that it has gathered information to enhance the workability of the initiative as it claimed to have plans to launch it any moment from now.

Meanwhile, the centralised database intended to be a repository of all the insurance industry data, was scheduled to go live during the third quarter of year 2011, but this was not to be.

Although the Chairman, Information Technology Committee of NIA, Olawale Adedokun, in the committee’s report to members of the association in June 2011 had informed that the system was currently undergoing a test run, the NIA appeared to be handicapped as the operators were not cooperating with the association.

It was gathered from sources close to the Governing Council of the NIA that majority of the insurance companies are not ready to submit information on their business for use by the database because they are afraid of losing their businesses to other competitors.

The operators argued that since NIA failed to make the market agreement of ratings work, the ability of the self regulatory body to successfully coordinate the database project was in doubt.

Considering the cut-throat competition in the industry which has made the operators to indulge in the unethical practical of rate cutting, the operators expressed fears that disclosing information on their business to other insurers would amount to giving them opportunity to hijack their businesses.

The insurance industry had in the last quarter of 2010 set out to develop and implement a centralised database system, which will be repository of all insurance policies underwritten insurance companies.

While the NIA had at the beginning of 2011, said the association would be focusing on setting up the consolidated data base during the yearend that this would be operational before June 2011, almost seven months after, the association has got nothing to show for its promises.

Courteville Investment, listed in the Commercial/Services Sector of the Nigerian Stock Exchange (NSE) is partnering the NIA to provide the database solution.