The National Insurance Commission (NAICOM) has resolved to pursue, as a priority, the safety and soundness of the insurance sector’s regulated entities.
Commissioner for Insurance, Mr. Olusegun Omosehin, in his keynote address at the Chartered Insurance Institute of Nigeria’s Year 2024 Insurance Professionals’ Forum in Abeokuta, Ogun State, identified five strategic priorities aimed at transforming the industry.
According to him, these priorities include safeguarding policyholders and restoring public confidence in the sector, strengthening supervisory and regulatory capabilities, improving the safety and soundness of the insurance industry, fostering innovation and sustainability, and increasing accessibility and penetration of insurance products across the country.
He noted that the adoption of risk-based supervision and risk-based capital have become inevitable for insurance operators if they want to compete with their counterparts across the globe and remain relevant in the management of risks of our existing and potential customers.
He said that strong financial base is key to their success as an industry said the Commission has resolved to pursue, as a priority, the safety and soundness of the sector’s regulated entities.
Quoting the words of Benjamin Franklin, “one rotten apple, spoils the barrel”, Omosehin said they are all witnesses to what this has caused them as an industry and are now more determined to rid ourselves of that cankerworm.
He said financial soundness and stability of financial institutions have become more critical than they can ever imagine, noting that they are all aware that major events in the world such as the COVID19 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.
He said the theme for this year’s forum, “The insurance Industry: Transformation Strategies towards Expanding Market Reach” could not have come at a better time.
“It is not only apt but accurately contextualised to broaden the horizon of insurance business and also to reawaken the need for the industry to rise up to our current realities.
“This is the time for insurance professionals to make insurance count in national discourse and time to harness every opportunity and maximize the potentials of the dynamics, demography, size of our economy, and the ambitions of the government,” Omosehin said.
Omosehin further stressed the importance of innovation and sustainability, noting that the industry must adapt to changing consumer preferences and lifestyles. According to him, the future of insurance lies in developing products that meet the demands of the modern market, especially as financial services increasingly rely on technology and innovation.
“The insurance sector must embrace innovation to keep pace with rapid market changes and evolving consumer preferences. We must diversify our products, improve transparency, and invest in technology,” he urged.
He also emphasized the importance of sustainability, calling for a balance between profitability and meeting the long-term needs of customers and the environment.
Addressing the professionals at the event, President, Chartered Insurance Institute of Nigeria (CIIN), Mrs. Yetunde Ilori said that the insurance sector faces an unprecedented opportunity to reinvent itself.
She posited that through digital transformation, they can offer personalised, seamless experiences for their customers simplify their operations and create innovative products that address the changing risk landscape.
She said: “Whether through AI-driven underwriting, blockchain in claims management, or new models like on-demand insurance, our industry is being reshaped.
“However, transformation is not only about technology. It is about creating a customer-centric mindset that focuses on building trust, offering transparency, and fostering long-term relationships. Expanding our market reach involves understanding the evolving needs of our customers, reaching underserved segments and providing solutions that speak directly to their concerns.
“One of the pillars of my EPIC agenda is professionalism, as professionals in this field, we must be disciplined. Trust is pertinent in a customer-centric atmosphere, run a business where your clients can beat their chest for you when it is time to settle claims. Our greatest advert is prompt claims settlement, transformation should begin here”.
Increasing insurance penetration and making insurance products accessible to all Nigerians remain key goals for NAICOM. Despite the significant potential of the insurance market in Nigeria, penetration remains low, with many citizens unaware of the benefits of insurance.
Omosehin said the Commission was working on strategies to expand coverage across the country, particularly in underserved regions.
He highlighted that for penetration to improve, insurance professionals must conduct business with integrity and foster trust with consumers.
“Trust is at the heart of insurance. We must build and maintain it if we are to see any real growth,” Omosehin said.
He also stressed that a strong corporate governance culture is vital for the success and sustainability of the insurance sector. He noted that good governance practices would enhance decision-making processes and ensure the long-term stability of companies within the industry.
“The quality of strategies and decisions made by insurance companies will determine how far they can go in contributing to national development. Strong corporate governance is not optional; it is critical for survival,” Omosehin said.
NAICOM’s commitment to enforcing corporate governance standards, he added, would ensure that insurance entities are well-positioned to meet regulatory demands while also contributing significantly to the nation’s economic output.
