Insurance regulator, the National Insurance Commission (NAICOM) has cautioned insurance companies to take necessary steps that would enable them to navigate the challenges in the macroeconomic environment to enable the sector to remain on the part of growth.
The Commission said, being able to manage the impact of inflation, and technological adoptions will help companies remain profitable and be in a better position to manage risks confronting the economy.
Olusegun Omosehin, commissioner for Insurance/CEO, National Insurance Commission (NAICOM) made the remark in Lagos at The Insurance Meets Tech (IMT) 2024 organised by Modion Communications.
Omoshin said, “Navigating the current macroeconomic realities successfully would be a natural precursor and building block for the revitalisation of the insurance industry and this must of necessity be prioritised.”
Omosehin said the impact of inflation has been a major concern for the insurance sector, as rising prices affect both insurers and policyholders.
“For insurance companies, it can make it difficult to operate profitably, especially if claims costs increase due to inflation. To mitigate this, insurers must carefully manage their investment portfolios, adapt pricing strategies, and maintain adequate reserves”.
On digitalization and adaptation, the NAICOM boss emphasised the need to embrace digitalization as a critical factor.
“Insurers must modernise their processes, enhance customer experiences through digital channels, and invest in technology to streamline operations.”
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“Adapting to changing consumer behaviours and preferences is equally important. Offering online policy purchase, claims processing, and customer service can attract tech-savvy customers.”
Speaking on the theme of the conference: “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar
Economic Aspiration”, he said is pertinent to reiterate that the Commission plays a vital role in fostering innovative business solutions that address pressing economic and social issues in Nigeria’s insurance sector.
In achieving this objective, we must of necessity address the following fundamental issues plaguing the sector, which include among others – low insurance penetration; lack of public trust market fragmentation; regulatory reforms; digital transformation and adaptation
“Essentially, revitalizing the Nigerian insurance industry to risk-manage Nigeria’s one trillion dollar economy literally speaks to the insurance industry’s readiness and preparedness to de-risk the activities that are projected to galvanize productivity, innovations, economic growth and development.
He said in furtherance of the need to address the fundamental question of how to attain our intended goals, we are resolved to place high priority on the settlement of genuine claims as that is the fundamental reason for our existence as an industry.
“One of the enshrined and fundamental responsibilities of the Commission as a regulator is the protection of policyholders, hence the NAICOM prioritised prompt settlement of all genuine claims, fair treatment of policyholders and utmost transparency as some of the ways to boost the insurance industry’s image and support economic growth.”
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