The National Insurance Commission (NAICOM), the Chartered Insurance Institute of Nigeria (CIIN) and other stakeholders in the industry have highlighted risk-based capital approach, investment in digital capabilities and automation, capacity development programmes, specific products development among others as drivers of industry growth in 2022.
The organisations spoke in Lagos during the 2022 Business Outlook Seminar organised by the CIIN, with the theme ‘Economic Policies of the Government in 2022: Challenges, Issues and Prospects.
The Commissioner for Insurance, Sunday Thomas, who spoke on the topic ‘Strategies Aimed at Cushioning the Effects of the COVID-19 on the Operations of the Nigerian Insurance Industry and the Way Forward,’ said the NAICOM ensured increased visibility for the insurance sector.
He said the Commission has also continued to implement effective policyholder protection schemes, market development as well as strengthen regulatory oversight and risk management.
“The commission reviewed current policyholders’ protection schemes and improved use of the security fund for settlement of insolvency and distress; improved enforcement of market conduct rules; and monitored the degree of customer satisfaction and enhanced insurance awareness by policyholders in Nigeria,” Thomas said.
Going forward, the Commissioner stated that the insurance operators need to embrace risk-based capital approach, enhanced investment in digital capabilities and automation, standardisation of reports and capacity development programmes, among others as the way forward to growing the industry.
Read also: Embedded risk management can help Nigeria tap innovation, economic opportunities – RIMAN chairman
Giving his welcome address earlier, Muftau Oyegunle, president/chairman of Council (CIIN)described the Business Outlook forum as an avenue where key players in the insurance industry and financial subsector of the economy converged to review the business environment in the country, for the immediate past year and strategise on the way forward for the insurance industry in the New Year.
He said the programme examined the national budget, reviewed the thrust of the fiscal and monetary policies of the government and estimated how these would influence the insurance industry, in particular, and the economy in general.
While making his presentation, Oladimeji Alo, managing director/CEO, Excel Professional Services Ltd. said there was a huge prospect in the insurance industry that was yet untapped in the country.
According to him, this is one reason foreign investors are coming into the Nigerian insurance industry.
He said there was a need for insurance companies to increase awareness on claims paid by the industry, and attract the public with friendly retail insurance products.
On his part, Peter Ashade, group chief executive officer, United Capital Plc, speaking on the topic, ‘Insurance Perspective of the Theme Paper’, implored operators to focus on the oil sector stressing that the Petroleum Industry Act would create more opportunities for the insurance industry to harness.
He also urged them to increase their capacity on agricultural insurance as there are huge opportunities in the sector.
He called for proper management of data. “Note that the quality of your decision making is driven by the quality of your data,” Ashade stated.
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