The National Insurance Commission has left the insurance professionals in no doubt that its clear mandate to get genuine claims paid and nurse and sustain financial soundness and stability of financial institutions “have become more critical than we can ever imagine.”
“Dear professionals, strong financial base is key to our success as an industry. As a Commission, we have resolved to pursue, as a priority, the safety and soundness of our regulated entities. Remember the words of Benjamin Franklin: “one rotten apple, spoils the barrel.” We are all witnesses to what this has caused us as an industry and are now more determined to rid ourselves of that cankerworm.”
These formed part of the critical lines in the keynote address delivered today in Abeokuta on behalf of the Commissioner for Insurance, Olusegun Ayo Omosehin by the Deputy CFI, (Admin & Finance), Ekerete Ola Gam-Ikon at the Chartered Insurance Institute of Nigeria CIIN, Year 2024 Insurance Professionals Forum – The Insurance Industry: Transformation Strategies Towards Expanding The Market Reach.
Omosehin and his team has found inseparable need for strong capitalised insurance and reinsurance and are preparing the operators for what is coming and unlike before this backed by NAICOM bill already in the making in the Senate; it give CBN type of powers to NAICOM making it impossible for operators to seek court injunction against capital base increase. This the Commission linked should make insurance market safe and for customers to strongly believe insurers would meet claims obligations; and also be financially sound and have institutions that compete favourably with other sectors in terms of liquidity, capitalisation and expertise. He said the Commission would project these and more “if we must see the insurance industry of our dreams.”
Urging insurance professionals to cease the moment and change the course of the market, and clear in sight is claims, he says “This is the time for insurance professionals to make insurance count in our national discourse.” On the side of the Regulator, he said one of the enshrined and fundamental responsibilities of the Commission is the protection of policyholders, hence the Commission has placed significant premium on prompt settlement of all genuine claims principles.
“I however strongly believe that the most appropriate strategy for awareness creation is a complete change of mindset on the administration and settlement of claims, prioritising our clients’ needs, treating them fairly, with utmost transparency, and timeliness too,” he stated.
Pointing to other salient steps that must be taken to reach the mark of transformation, Omosehin, made this clear, “In order to meet the target of market expansion and growth, the insurance industry must develop a wide range of new skill sets and orientation, attract and retain talents, diversify products spectrum, improve adaptability and agility, improve on transparency and openness, invest in technology, improve trust and confidence in insurance, have institutions that complete favourably with other sectors in terms of liquidity, capitalisation and expertise.”
The CFI also made it clear that the enthusiasm to open up insurance across the the country and deepen penetration would require looking inward and re-appraise professional and business ethics and conduct. “As professionals, we must conduct our business with outmost integrity and in manners that does not bring disrepute to the insurance profession.”
Still circling this issue, NAICOM Boss said prioritising accessibility to insurance products and increasing penetration are pressing issues. “However, the conduct of insurance practitioners inbuilding and maintaining trust of consumers is our primary responsibility, and that will galvanise growth and deepen penetration in the country.”
Making his input before delivering the CFI’ keynote, Ekerete Gam-Ikon said the theme of the Insurance Professionals Forum is the way the Commission wants to go. The expansion of the market he stated is what the Commission focuses on and urged the attendees present and virtual to that market expansion must be driven by technology.
“It is not where we have come from that matters right now, its where we are going. Where we are going, the speed is high and the risk is high. The better way of saying it is we must up our game because the risk we are taking today is already crystalising. How do you respond to that? We have risks that reinsurers are saying, we cannot give cover. So how do we proceed. This brings the theme to the fore.”
The CIIN President, Mrs Yetunde Ilori, also expressed same view as the the DCFI in her welcome address,” …we recognise that the global landscape of insurance is shifting rapidly, driven by advances in technology, changing customer expectations, and emerging risks. The question before us is not just how we respond to these changes, but how we harness them to expand our market reach, deliver greater value and ensure sustainable growth for our industry.”
