The Commissioner for Insurance, Olusegun Ayo Omosehin, has highlighted some of the policy thrusts and reforms being embarked upon by the National Insurance Commission as well as other essential measures which must be taken by industry players as vital catalysts of the industry’s growth.
He made the submissions while delivering a key note address at the 2024 Insurance Professionals Forum of the Chartered Insurance Institute of Nigeria(CIIN) which is holding from 11th to 15th of September,2024 in Abeokuta.
Describing the event as ‘ significant and momentous since it is the first time I will be addressing this gathering of Professionals as the Commissioner for Insurance, National Insurance Commission’, he also commended the current and past leadership of the Institute for their “steadfastness and dedication to the growth and development of the Institute. 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.”
Drawing a nexus between the theme for this year’s forum and the industry’s 10 year road map, Omosehin, who was represented by the Commission’s Deputy commissioner for Insurance, Finance and Administration, Ekerete Ola Gam-Ikon 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 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.
Continuing, he said, “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 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 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 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. 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.
“Dear professionals, 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.
“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.
“As mentioned earlier, 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.
“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.
Concluding, he harped on the need for cooperation and support of all stakeholders as an integral factor to the success of the transformation strategies to be adopted for the growth and development of the industry.
“The Commission is hereby enjoining 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.