The National Insurance Commission (NAICOM) on Saturday said it would continue to execute its various regulatory and market development initiatives to uplift Nigeria insurance sector to a global standard.
Commissioner for Insurance of NAICOM, Mr Sunday Thomas, said this at the 2022 Seminar for Correspondents covering the insurance sector in Lagos.
The theme of the seminar was: The Future of the Nigerian Insurance Sector in a Shifting Landscape.
Thomas, also the Chief Executive Officer, NAICOM said, the seminar was specially couched considering that a lot has changed in business environment over the last few years.
He said, at this period of rejuvenation, Nigerian insurance sector must develop innovative products, distribution channels and embark upon massive infrastructural development.
The NAICOM boss said players in the industry must improve in social safety nets scheme, rejig business continuity plans and general deployment of technology to meet the expectation of today’s consumers and create new experiences that add value.
Thomas lited some of the initiatives of NAICOM to include: engagement with stakeholders, including state governments towards ensuring domestication of the laws to ensure compliance with compulsory insurances.
He said the engagement was geared to improve the business of insurance in respective states.
The commissioner stated that the commission was driving the Market Development and Restructuring Initiative (MDRI) to promote compulsory insurance products.
Thomas mentioned that NAICOM was also enngaging in Feasibility Assessment for Index Based Risk Transfer Solution in the agricultural sector, driving financial inclusion via focused insurance awareness campaign for the financially excluded.
He noted that the commission had launched the Insurtech Accelerator platforms under the Insurance Market Development programme, tagged : Bimalab Programme in conjunction with FSD Africa.
According to him, the commission was in an ongoing synergy with FSD Africa on developing a Risk Based Capital Model for the Nigerian insurance industry.
Thomas stated that the commission would continue to promote the development of products and business models that meet the needs of the financially excluded group and promote the Actuarial Capacity Development Programme and Risk Based Supervision regime and regional integration.
The commissioner stated that NAICOM had also set up of the insurance sector
Committee on African Continental Free Trade Area (AfCFTA) amongst others.
He explained that disruption plays an integral part of any business in today’s modern business environment, hence innovation being implemented by the commission is geared towards gaining control of specific segment of the market that have been left untapped.
Thomas said the commission was doing this by encouraging the introduction of products tailored to the consumers in order to grow insurance businesses.
He emphasised that the global business environment would continue to grapple with the lingering effect of the Covid-19 pandemic and the ongoing Russian and Ukraine war that is impacting negatively on world economies.
“A lot of us are still struggling with what has changed and how to really sort facts from fiction in the environment.
“Considering the rates of inflation and foreign exchange, security challenges and how we as insurers could help alleviate the inherent risk facing insurance consumers and being a source of long-term funding for capital projects.
“As regulators, we would continue to consolidate on the administration’s cardinal agenda of developing the market and fostering insurance inclusion along with mutual collaboration of the media and other relevant stakeholders, ” he said.
