Insurance regulator, the National Insurance (NAICOM) said on Monday that the next big phase of insurance growth in the country is the annuity business.
Annuity business, a product of life companies, the Commission said, would benefit significantly from the growing pension assets now at about N10 trillion as more and more contributors become aware of the benefits of the product.
Sunday Thomas, acting commissioner for Insurance /CEO of NAICOM, made the disclosure in Kano, Kano State during a seminar for Insurance journalists.
Thomas said the business was impacting positively on the industry, adding that the public was becoming more exposed and knowledgeable about the workings of annuity and this will continue as the future is looking very bright for the business.
He stated that the Commission would do everything within its powers to prepare the industry for this big future and the tasks that would be associated with managing the funds as it grows.
“The Commission is committed to ensuring financial soundness and viability of the insurers and the adequate protection of policyholders at all times and these will continue to be part of our regulatory priorities,” Thomas said.
Speaking on its plans for 2020, Thomas said the commission would be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.
Speaking further on recapitalization, he said the essence of the recapitalisation is a move to ensure that the industry became more robust in its technical competence and financial base, building confidence, trust and enhancing market value.
This is aimed at repositioning the sector for self-actualization in terms of growth and development.
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“The financial inclusion strategy has been central to the Federal Government’s developmental plan and the Commission has over the years invested hugely in the development of financial inclusion mechanisms which includes the introduction of Microinsurance and Takaful Insurance products,” he said.
“The introduction of these lines of insurance is intended to deepen the penetration of insurance in the country and bring into the fold majority of the populace that are hitherto excluded.
“So far, some milestones have been recorded in this regard with three standalone Microinsurance and four Takaful insurance companies already granted approvals.”
He said the Commission would continue to deploy more energy and resources in building public trust and confidence in insurance despite years of poor perception.
On claims he said the regulator would continue to ensure that genuine claims are promptly paid while also ensuring a reasonable protection of investments of shareholders.
He added that in demonstrating its willingness to protect the policyholders, the Commission had further strengthened its Complaint Bureau Unit to respond to public complaints over claims settlement. Available statistics have shown that there has been great improvement in this area.
“Ensuring the right pricing of insurance products and effective deployment of technology for ease of transaction are among the key areas the Commission will be emphasising this year.
“Digitalisation of insurance business is no longer an option, but an imperative which we all have to work towards its actualisation. As we may all be aware, the industry is currently lagging behind other financial services sectors in this area. The Commission is working vigorously to see that all its operations are digitalised.
Thomas also stressed that 2020 is a year for us to turnaround the fortunes of the industry and this cannot be accomplished without digitalising our processes and encouraging the industry to imbibe same.
He said the commission would in the course of the year continue to introduce new reforms and initiatives in line with international best practices for attaining the level of growth and development we all desire for the sector.
