The dots of common ground in the road map of market centred development for the regulator and industry operators is far in between and in many cases rare and when it happens celebrated. Dots of common ground are coalescing for the insurance industry and the future picture of a safe market is on course.
That was the tone of a takeaway from the National Insurance Conference held at Abuja Continental Hotel from October 22 – 24 signalling the hope that less regulatory interference is not just what the operators want but the National Insurance Commission considers it and places it as top in the list of things to come over the next decade the countdown from 2024 – 2033.
The Commissioner for Insurance Sunday Thomas, announced to the attendees at the gathering that was open to all economy players and government agencies and departments and insurance consumers, that the transformation journey of the insurance industry will spread to nocks and crannies of the market with a declaration lifted up for all to see the direction of the market and the Commission’ commitment to “transform the regulatory environment to sustain the industry growth.” The first priority in a list of seven equally competing strategic thrusts.
NAICOM’s top of the decade policy to project the operators and less of the Commission, formed a tag team of a sort in the keynote delivered by Tony Elumelu, Chairman: heirs Holdings Group who within the space he created in the common ground, expressed a wholesale insurance industry expectation from the Commission in a transformed regulatory environment.
Nailing it in as part of the solutions to the challenges of the market, Elumelu aptly said there should be dimensions to regulatory overhaul; on account of this, he stated that “NAICOM should focus on substance and things that will shape the sector and stop approving adverts. Use that time for more important aspects of regulation and save taxpayers money for more catalytic actions.”
Another front he opened is for operators to take the lead and remain dominant in the area of awareness which should be intensely executed for five years. Awareness he cleared, would require capital infusion by all insurers and, to make it work and effective he proffers a mandatory contribution of 0.5% of total revenue with the Nigerian Insurers Association NIA positioned to “administer this professionally.”
The CFI also holds the strategic view that the industry needs to promote insurance awareness and adoption. The dominance of this in different fora is a clear assertion that the industry awareness index is below acceptable level. The persistent call for broad industry participation has repeatedly be positioned but buy-in has dragged each time it is mentioned.
What is new now is Elumelu’ suggestion of a five year uninterrupted awareness campaign that is oiled with 0.5% of total revenue of insurers. This lifeline if its eventually accepted will be professionally handled by the NIA . If it goes the way of previous awareness campaign suggestions that were too short a period for impact or a sparse presence within the public space it will end just a flick.
Another dimension Elemelu frames is an industry where “NAICOM should allow brilliant minds to come into the insurance sector and limit years of experience only to technical areas. ” Envisaging a sector driven by young and innovative minds Heirs Holdings Chairman sounds a distinctive clarion call, “Let us open the insurance sector in Nigeria to our young and innovative minds.”
The regulator and Elumelu converge on this but Elumelu expects the Commission to match its commitment to this by creating the environment that will make it stream. Such a right sized enabling environment he intones, “will see the transformation of the Nigerian insurance sector.
Noting that more visibility for operators is not tantamount to shoving off the regulator, he emphasised that regulators and government have a critical role to play in making insurance a common right of every Nigerian citizen.
Getting so many potential insurance consumers into the insurance net Elemelu sounded, required the above and strikingly too must lead to a green market scene where “we must re-assess and eliminate the stifling policies, roadblocks, and complacency in the insurance system, to encourage innovation and provide our people with simple and accessible insurance, not as an option, but as a fundamental right to secure their future. All within a regulatory framework that secure their future. All within a regulatory framework that serves both clients and grows our industry.” come incorporate
