NAICOM Boss Calls for Industry-wide Overhaul to Propel Nigeria’s Insurance Sector, Economic Growth 

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Samuel Mobolaji

Commissioner for Insurance, National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, has urged the insurance sector to embrace a comprehensive overhaul to expand market reach and foster Nigeria’s economic development.

Speaking at the 2024 Chartered Insurance Institute of Nigeria’s (CIIN) Insurance Professionals’ Forum, with the theme: “The Insurance Industry: Transformation Strategies towards Expanding Market Reach,” Omosehin, who was ably represented by Deputy Commissioner for Finance and Administration, NAICOM, Mr Ekerete Ola Gam-Ikon, emphasized the urgent need for innovation, regulatory reforms, and stronger corporate governance to strengthen the industry’s role in the economy.

He explained that with the recent launch of the “Nigerian Insurance Industry 10-year Transformation Roadmap,” a framework which is crucial for guiding the sector through necessary reforms, would increase market penetration, enhance financial soundness, and restore public trust.

He, therefore, outlined the Commission’s five strategic priorities: safeguarding policyholders, improving regulatory oversight, ensuring financial stability, fostering innovation, and expanding access to insurance products across Nigeria.

According to him, while we have seen growth, the insurance sector must adapt to the current realities of the business environment, such as technological advancements, economic instability, and evolving consumer preferences.

“Our industry must innovate, develop new products, and leverage technology to remain competitive both locally and globally”, Omosehin said.

A key point of Omosehin’s address was the establishment of a dedicated Innovation-Hub Unit within the Commission, created to foster a more dynamic regulatory environment and accommodate technological advancements. This, combined with the regulatory sandbox initiative, is aimed at spurring innovation within the industry and driving market expansion.

Omosehin, also, underscored the need for financial institutions within the sector to strengthen their capital base and embrace risk-based supervision and capital management.

He argued that these measures are essential for competing on a global scale, particularly as the sector grapples with challenges such as inflation, climate change, and shifting consumer behavior.

“As financial markets around the world evolve, it is imperative that we adopt robust risk-based supervision practices and maintain a strong financial base. The soundness of our industry is critical to its survival and growth,” Omosehin said.

Moreover, the Commissioner highlighted the importance of corporate governance and ethical conduct in the insurance sector. He called on professionals to prioritize transparency, fairness, and timely settlement of claims to rebuild consumer trust.

He noted that this would be instrumental in increasing insurance penetration across Nigeria, a crucial factor in driving both sectoral and national growth.

“Corporate governance is the cornerstone of any successful industry. The quality of decisions made within our institutions will determine their future and the role they play in contributing to national economic output,” he stated.

Omosehin’s call for reform extended beyond insurance companies, as he urged collaboration among all stakeholders—regulators, professionals, and associations—to ensure a unified and resilient approach to transforming the industry.

“The Commission is committed to creating an enabling environment for the growth of the insurance sector. However, we need the cooperation and expertise of all players to build a stronger, better insurance industry that can significantly contribute to Nigeria’s economic development,” he concluded.

As Nigeria seeks to expand the reach and impact of its insurance industry, the transformation strategies discussed at the forum aim to position the sector as a key driver of economic growth, with a renewed focus on innovation, transparency, and financial stability.

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