NAICOM Outlines Priorities for Transforming Nigerian Insurance Sector
By Patience Ikpeme
The National Insurance Commission (NAICOM) has outlined five key priorities for transforming the Nigerian insurance sector.
These priorities, as outlined by the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, represented by the Dep. Commissioner for Insurance, Finance and Administration Mr. Ekerete Ola Gam-Ikon aim to safeguard policyholders, strengthen supervisory capabilities, improve financial soundness, foster innovation, and enhance insurance accessibility.
One of the fundamental responsibilities of NAICOM is the protection of policyholders. The Commission has emphasized the importance of prompt claim settlement and has called for a change of mindset within the industry towards prioritizing customer needs and treating them fairly, transparently, and timely. NAICOM is committed to implementing measures that ensure policyholders are treated fairly and their claims are settled promptly.
To ensure organizational and operational effectiveness, NAICOM is undergoing structural and administrative reforms. The Commission has created a new Directorate for Innovation and Regulation to address the dynamic and evolving regulatory landscape. These reforms aim to enhance NAICOM’s ability to supervise the insurance market effectively and promote compliance with regulatory requirements.
The Commissioner highlighted the significant impact of global events, such as the COVID-19 pandemic, economic instability, and climate change, on the financial services sector. He emphasized the importance of financial soundness and stability, advocating for the adoption of risk-based supervision and risk-based capital to remain competitive and manage risks effectively. NAICOM will prioritize the safety and soundness of insurance companies to protect policyholders and maintain the stability of the insurance market.
Innovation and sustainability are key emerging issues in the insurance industry. NAICOM recognizes the need for the sector to embrace innovation to meet the changing demands of consumers and develop new products. The Commission also emphasized the importance of attracting and retaining talent, diversifying product offerings, and investing in technology to improve trust and confidence in the insurance industry. NAICOM will support initiatives that promote innovation and ensure the sustainability of the insurance sector.
NAICOM is committed to increasing insurance penetration and accessibility across Nigeria. The Commission will focus on improving the conduct of insurance practitioners to build trust with consumers and promote the adoption of insurance products. NAICOM will also work to address challenges that hinder insurance accessibility, such as affordability and lack of awareness.
Mr. Omosehin emphasized the importance of strong corporate governance practices in the insurance sector. He highlighted the need for insurance companies to adhere to ethical standards and conduct their business with integrity. NAICOM will promote good corporate governance practices and take action against entities that violate regulatory requirements.
By focusing on these priorities, NAICOM aims to transform the Nigerian insurance sector, making it more efficient, innovative, and accessible to all. The Commission’s commitment to safeguarding policyholders, strengthening supervision, improving financial soundness, fostering innovation, and enhancing accessibility will contribute to a more vibrant and resilient insurance market in Nigeria.
