The Commissioner National Insurance Commission (NAICOM), Olusegun Omosehin, has said that the insurance sector must embrace innovation to meet up with the rapid market changes, changes in consumers’ preference, tastes and lifestyle.
To this end, he said “we must develop products that meet the demands of our market as innovation has taken the driving force in the financial services sector.”
Omosehin spoke at the just concluded 21st edition of the Insurance Professionals Forum organised by the Chartered Insurance Institute of Nigeria (CIIN) held in Abeokuta, Ogun State, saying that NAICOM is currently undergoing structural and administrative reforms to ensure organisational and operational effectiveness.
According to him, the theme for this year’s forum; “The insurance Industry: Transformation Strategies towards Expanding Market Reach” 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.
He was of the opinion that this is the time for insurance professionals to make insurance count in our national discourse. “It is time to harness every opportunity and maximise the potentials of the dynamics, demography, size of our economy, and the ambitions of the government,” he said.
The insurance commissioner pointed out 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.
He said it is in the light of this that the Commission crafted and developed its 4-year Strategic Plan (2024 to 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, Omosehin reiterated that “the Commission has set out five priority areas for immediate implementation which include; safeguarding policyholders and improving confidence in the industry, strengthening our supervisory capabilities and organiational 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.”
While stating 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, he stressed that 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.
He averred 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 is the transformation of the regulatory environment. 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. The Commission has created a new Directorate for innovation and regulation. It is our belief that we cannot achieve different results whilst doing the same things and that is why our current structure reflects the dynamism and realities of current regulatory requirements,” he added.
Omosehin pointed out that financial soundness and stability of financial institutions have become more critical than we can ever imagine due to major events in the world such as the COVID19 pandemic, economic instability, climate change, and many more that have direct impact on global financial markets.
Consequently, he noted that adoption of risk-based supervision and risk-based capital has become inevitable if Nigeria would compete with its counterparts across the globe and remain relevant in the management of risks of its existing and potential customers.
He said: “Dear professionals, a 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.
“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 meet the demands of our market as innovation has taken the driving force in the financial services sector.”
In view of this the Insurance guru informed that the Commission 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 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 are to be considered if we must see the insurance industry of our dreams,” he charged.
While the industry is enthusiastic about opening up the insurance market in the country and deepening penetration, he urged professionals to look inward and re-appraise their 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,” he further charged, disclosing that the Commission is prioritising the issue of accessibility to insurance products across the country and is keen about increasing penetration.
However, Omosehin emphasised that the conduct of insurance practitioners in building and maintaining trust of consumers is the primary responsibility of the Commission, and that doing that will galvanise growth and deepen penetration in the country.
Speaking further, he said the Commission will always emphasise the importance of strong Corporate Governance practices in the survival of business entities, stating that every other strategy depends solely on a strong corporate governance culture in the industry’s 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 stated.
The NAICOM boss stressed that the cooperation and support of all stakeholders is equally an integral factor to the success of the transformation strategies to be adopted for the growth and development of the industry.
He called on all players, professionals, associations “to come to the table, bringing our expertise, maximising our differences and building yet again a stronger and better insurance industry. The ability to stand united, focused and resilient will determine how far we can go.”
Omosehin used the occasion to congratulate the new leadership of CIIN under the stewardship of Mrs. Yetunde Olubunmi Ilori and also commended the immediate and all past presidents of the institute for your steadfastness and dedication to its growth and development.