Insurance Sector Transformation Our Priority- NAICOM Boss
The Commissioner for Insurance and Chief Executive Officer of National Insurance Commission( NAICOM), Mr Olusegun Ayo Omosehin has said the current focus of the commission is the transformation of the Insurance sector.
Mr Omosehin stated this in his keynote addresses at the
ongoing 2024 Insurance Professional’s Forum organized by the Chartered Insurance Institute of Nigeria (CIIN), holding in Abeokuta, the Ogun State Capital.
The NAICOM Boss who was
ably represented by the Deputy Commissioner for Insurance, Finance and Administration Mr. Ekerete Ola Gam-Ikon, said 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.
He noted that 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 claim” , he said.
“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”.
He pointed out that another key area of correlation between the ‘industry roadmap’ and the Commission’s Strategic Plan is the transformation of the regulatory environment, adding that the Commission is undergoing structural and administrative reforms to ensure organisational and operational effectiveness. These reforms are expected to impact on all aspects of our operation as a regulator.
According to him, the Commission has created a new Directorate for innovation and regulation, stressing that the Commission cannot achieve different results whilst doing same things and that is why our current structure reflects the dynamism and realities of current regulatory requirement.
He congratulated the new leadership of the Institute under the stewardship of Mrs. Yetunde Olubunmi Ilori, while also commending the Immediate and all Past Presidents of the Institute for their steadfastness and dedication to the growth and development of the Institute.
He said the CIIN as a professional body has over the years grown its membership base and recorded achievements in various aspects of insurance education development, setting ethical standards and ensuring compliance with required conduct expected of members.
He noted that the theme for this year’s forum – “The insurance Industry: Transformation Strategies towards Expanding Market Reach” – could not have come at a better time as 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 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 said the remarkable thing 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.
He posited that 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.
“We 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 also said financial soundness and stability of financial institutions have become more critical than we can ever imagine, revealing that 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.
He reminded that gathering that strong financial base is key to our success as an industry.
“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”, he said.
According to him, Innovation and sustainability are some of the major emerging issues today, and noted that 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”.
As apart of efforts to meet the target of market expansion and growth, the NAICOM Boss said 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.
