National Insurance Commission (NAICOM) says increased funding for technology will deepen penetration and growth in the insurance industry.
The Commission said this has become necessary to launch and position the industry in the new world that has been transformed by advent of Covid-19.
Sunday Thomas, commissioner for Insurance gave the hint at the 2021 Insurance Directors Conference held Wednesday in Lagos with the theme ‘Insurance Industry in a Changing World’
Thomas said the rapid changes brought about by the Covid-19 pandemic in many fronts have drastically opened doors of opportunities for many positive thinking minds and created serious setback for many who are not able to cope with the speed at which some of these changes appeared.
He said technological advancement in the insurance industry has been accelerated by Covid-19 pandemic compelling many of us to shift from the traditional ways of conducting business to more sophisticated and technology driven mechanisms.
Thomas said the Commission on its part has successfully launched the NAICOM Portal on 1st September, 2021 deployed to ensure effective and efficient interface between the Commission and her stakeholders.
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“The Commission had since directed all operators to integrate their operations with the portal. It is imperative to inform you here that any company that is lagging behind in this regard is inadvertently phasing itself out of business.”
“Your respective attitude towards information technology funding in your various companies will go a long way in determining the longevity and existence of not only the companies, but the retention of the brand names or corporate identities. This is food for thoughts, Thomas said.
Thomas on claims, said one issue that has been setting the industry on a reverse gear in its developmental efforts is the issue of claims settlement.
He said, a few amongst us have been making this work a tedious one by not paying claims promptly.
“We should know as a fact that insurance business is about payment of genuine claims and anything short of that will continue to hurt insurance business in the country thereby giving the industry poor reputation, perception and image.”
I urge you to look at this issue at your level and deal with it decisively as it has continued to give the industry a bad name, Thomas urged directors.
Muftau Oyegunle, president, Chartered Insurance Institute of Nigeria (CIIN) in his remark at the event said it is impossible to talk about the changing world of insurance or even the financial sector in general, without talking about Artificial Intelligence (AI).
“AI is fast becoming the order of the day as organizations seek to build leaner but more effective teams.”
According to him, every business firm in the 21st Industry must leverage on technology to simplify its business strategies and processes especially now that the pandemic has forced business executives to do things differently.
“The future that AI promises for insurance is a series of touch less processes from premium collection through the entire value chain until claims processing.”
This is evident by the numerous start-ups, as well as IT and insurance giants massively investing and offering increasingly innovative new solutions.
Oyegunle said it is imperative for market stakeholders to be at the cutting edge of technology and to equip themselves with the appropriate tools required for performance.
The purpose of insurance is to enable risk-taking, support economic growth, encourage innovation and ultimately to enhance the resilience of the society and economy, Oyegunle.
