By JEPH ADE

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, has said that time is now ripe to make insurance count in national development. He said this in a Keynote address at the ongoing Chartered Insurance Institute of Nigeria’s Year 2024 Insurance Professionals’ Forum in Abeokuta, Ogun State on the theme: “The Insurance Industry: Transformation Strategies towards Expanding Market Reach.” He was represented at the event by the Deputy Commissioner for Insurance, Finance and administration, Mr. Ekerete Ola Gam-Ikon.

The CFI said: “This Is the time for insurance professionals to make insurance count in our national discourse. It is time to harness every opportunity and maximize the potentials of the dynamics, demography, size of our economy, and the ambitions of the Government.”

He added: “What elated me about this year’s forum and the theme is the fact that the insurance industry had only recently launched the “Nigerian Insurance Industry 10-year Transformation Roadmap” which is the framework that is expected to guide transformation of the insurance industry in the country in the next 10 years.

“The rapid changes in the business environment and adoption of effective strategies to meet up with current realities are veracities that cannot be ignored. It is in the light of this that the Commission crafted and developed its 4-year Strategic Plan (2024 – 2027) which took into cognisance the strategic imperatives from the industry transformation roadmap as well as the current macro-economic realities in Nigeria as a whole.

“Cognizant of its role in the transformation agenda of the insurance sector, the Commission has set out 5 priority areas for immediate implementation which include; safeguarding policyholders and improving confidence in the Industry, strengthening our supervisory capabilities and organizational effectiveness, improving safety and soundness of the Nigerian Insurance industry, fostering innovation and sustainability of the Nigerian insurance industry, and enhancing overall insurance accessibility and penetration in Nigeria.

“The policy thrusts of the Commission’s new administration will thrive on the above priorities which will in turn shape the direction of regulation in the industry. One of the enshrined and fundamental responsibilities of the Commission as a regulator is the protection of policyholders, hence the Commission has placed significant premium on prompt settlement of all genuine claims.

“Whilst I do not intend to pre-empt the content of the papers to be presented by various speakers, I however strongly believe that the most appropriate strategy for awareness creation is a complete change of mindset on the administration and settlement of claims, prioritising our clients’ needs, treating them fairly, with utmost transparency, and timeliness, too.”

Another key area of correlation between the ‘industry roadmap’ and the Commission’s Strategic Plan, the CFI pointed out, is the transformation of the regulatory environment. The Commission, he stated, is undergoing structural and administrative reforms to ensure organisational and operational effectiveness. These reforms, according to him, are expected to impact on all aspects of our operations as a regulator.

He further stated: “The Commission has created a new Directorate for innovation and regulation. It is our belief that we cannot achieve different results whilst doing same things and that is why our current structure reflects the dynamism and realities of current regulatory requirement.

“We are all aware that major events in the world such as the COVID-19 pandemic, economic instability, climate change, rapid technological advancement, changing behaviour of consumers, crises across different parts of the globe, soaring inflation, instability in prices and many more have direct impact on global financial markets hence have now altered the way financial services are carried out. Financial soundness and stability of financial institutions have become more critical than we can ever imagine.  Adoption of risk-based supervision and risk-based capital have become inevitable if we want to compete with our counterparts across the globe and remain relevant in the management of risks of our existing and potential customers.”

Mr. Omosehin also reminded insurance professionals that strong financial base is key to the industry’s success. “As a Commission, we have resolved to pursue, as a priority, the safety and soundness of our regulated entities. Remember the words of Benjamin Franklin: “one rotten apple, spoils the barrel”. We are all witnesses to what this has caused us as an industry and are now more determined to rid ourselves of that cankerworm.

“Innovation and sustainability are some of the major emerging issues today. The insurance sector must embrace innovation to meet up with the rapid market changes, changes in consumers’ preference, tastes and lifestyle. We must develop products that meets the demands of our market as innovation have taken the driving force in the financial services sector.

The Commission, it was disclosed, had after issuance of the regulatory sandbox, which is intended to accommodate innovations, created a dedicated Innovation-Hub Unit which is targeted at addressing gaps in innovation regulation and market expansion.

In order to meet the target of market expansion and growth, the NAICOM boss said the insurance industry must develop a wide range of new skill sets and orientation, attract and retain talents, diversify our products spectrum, improve our adaptability and agility, improve on transparency and openness, invest in technology, improve trust and confidence in insurance, have institutions that compete favourably with other sectors in terms of liquidity, capitalisation and expertise. These and many more factors, he asserted, are to be considered if the country must see the insurance industry of its dreams.

He added: “While we are enthusiastic about opening up insurance market in the country and deepening penetration, I want to urge us to look inward and re-appraise our professional and business ethics and conduct. As professionals, we must conduct our business with utmost integrity and in manners that does not bring disrepute to the insurance profession.

“The Commission is prioritising issue of accessibility to insurance products across the country and is keen about increasing penetration. However, the conduct of insurance practitioners in building and maintaining trust of consumers is our primary responsibility, and that will galvanize growth and deepen penetration in the country.

“Every other strategy we discussed above depends solely on a strong corporate governance culture in our entities. The Commission will always emphasize the importance of strong Corporate Governance practices in the survival of business entities. The quality of the strategies and decisions made on behalf of those entities would determine how far they can go and how strategically positioned they will be in the sector’s contribution to national output.

He maintained that the cooperation and support of all stakeholders would be an integral factor to the success of the transformation strategies to be adopted for the growth and development of the industry, and that the Commission enjoined all players, professionals, associations to come to the table, bringing their expertise, maximising differences and building yet again a stronger and better insurance industry. The ability to stand united, focused and resilient, he said, will determine how far the industry can go.