INSURERS NEED HOUSING DATA FOR BETTER UNDERWRITING

Newly recapitalised Nigerian insurance companies need reliable and standardised housing data to effectively underwrite construction bonds and title insurance, according to the founder of Assetrica, Mayowa Adeosun.

Adeosun said the recent recapitalisation of the insurance industry had addressed the capital constraints that previously limited insurers’ ability to take on larger housing-related risks. However, he said the industry still needed better data to accurately assess and price those risks.

He explained that performance bonds could protect buyers and investors when contractors fail to deliver projects as agreed, while title insurance could provide protection against ownership-related disputes that emerge after property transactions.

According to him, the proposed National Housing and Built Environment Regulation Policy could provide a framework for improving the quality and availability of information in the sector. The policy includes provisions for developer licensing, escrow arrangements, professional registration, construction quality assurance and a National Housing Industry Data Observatory.

Adeosun said the proposed data observatory could provide insurers with information on developers, construction projects and track records, helping them price performance bonds and title insurance more accurately.

He added that stronger links between Nigeria’s recapitalised insurance industry and the housing sector could create new business opportunities while improving protection for property buyers and investors.