WorldStage Newsonline– The National Insurance Commission (NAICOM) has charged the insurance sector to embrace innovation in order to meet up with the rapid market changes, alongside changes in consumers’ preferences, tastes and lifestyle.
Mr Olusegun Omosehin, Commissioner For Insurance/Chief Executive Officer, NAICOM said at the Insurance Meet Tech (IMT) 2024 conference in Lagos that the commission had completed a draft Insurtech Operation Guidelines which would be released soon, to meet up with market changes.
In his keynote address: “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration”, Omosehin, represented by Dr Julius Odidi, Head, Lagos Control Office, said that the insurance sector must embrace innovation to meet up with the rapid market changes, alongside changes in consumers’ preferences, tastes and lifestyle.
“We must develop products that meet the demands of our market, as innovation have taken the driving force in the financial services sector.”
According to him, organisations are leveraging technology to drive growth, improve efficiency, and stay competitive in an increasingly complex landscape,” he said.
Omosehin noted that the increasing momentum of insurtech development poses both opportunities and challenges for established industry players.
He said, to remain competitive, it is crucial that the commission proactively incorporate innovative insurtech solutions that would change conventional business models.
The commissioner added that this would safeguard the industry’s continued relevance in addressing customer needs and market position.
“The commission had since understood this reality and issued the Regulatory Sandbox Guideline to accommodate the testing and refinement of innovative products.
“Consequently, we established a Directorate for Innovation and Regulation, recognising that change requires new approaches.
“The current realities of economic instability, climate change, rapid technological advancement, changing behaviour of consumers, soaring inflation and forex instability on global financial markets have disrupted ways financial services are carried out.
“Hence, we must imbibe technology in order for us to have a one-stop shop for insurance products and services,” he said.
Omosehin further said NAICOM plays a vital role in fostering innovative business solutions that address pressing economic and social issues in Nigeria’s insurance sector.
He expressed that this commitment extends to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry.
The commissioner noted that in achieving the objective of revitalising the insurance industry, fundamental issues plaguing the sector must be addressed.
Omosehin listed some of these plagues as low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, digital transformation and adaptation.
“The current NAICOM management recognises the urgent need to strategically reposition the insurance industry and place high priority in certain areas that will potentially stimulate the transformation agenda of the insurance sector.
“As a commission, we have set out five priority areas for immediate implementation which include; safeguarding policyholders and improving confidence in the industry, strengthening our supervisory capabilities and organisational effectiveness.
“Also, improving safety and soundness of the Nigerian insurance industry, fostering innovation and sustainability of the Nigerian insurance industry, and
enhancing overall insurance accessibility and penetration in Nigeria,” he said.
According to him, revitalising the Nigerian insurance industry to risk-manage Nigeria’s one trillion dollar economy literally speaks to the insurance industry’s readiness to de-risk the activities projected to galvanise productivity, innovations, economic growth and development.
He noted that having sufficient capital that is commensurate to the risk of an insurer has become inevitable if the industry is to meet up with up with the consequential effect of a growing economy.
The commissioner stated that this was also necessary to enable the industry manage a one trillion dollar economy and compete with its counterparts across the globe in management of risks.
