The constantly changing strides of the world system and the current complex environment has increased the need to ensure effective supervision.
This view was shared by the Commissioner for Insurance, National insurance Commission, Sunday Thomas, at the Declaration on Insurance which was held March 31, in concert with development partners in Lagos.
Thomas explained that on track regulators were needed to ensure effective supervision as well as resolve broader policy challenges such as inclusive economic development, sustainability, climate risk and digitisation.
Incisive Thomas said, “Insurance regulators, therefore, have a vital role to play in sustainable economic development.” He explains, “Through regulatory and policy initiatives, regulators can guarantee that their insurance jurisdictions offer the essential range and variety of products and services that support the SDGs.”
Besides, he said “Supervisors can also act as conveners of key stakeholders to building partnerships to coordinate insurance solutions especially when faced with multifaceted risks such as climate change and pandemic risk.”
On environmental, social and governance issues, Thomas said it constitute a shared risk to insurers, businesses, governments and society; pointing out that some ESG issues such as, climate change, pollution and eco-system degradation, have various ramifications.
Pressing for innovation and collaboration, he said some ESG issues are considered as likely to be financially material to the success of organisations. He also, emphasised adherence to the four principles of sustainable insurance to ensure decision-making along ESG criteria. These are raising awareness with clients and partners; collaboration with governments and regulators to promote action on ESG criteria; and the double, accountability ;and transparency of progress in ESG implementation.
He asserted that the aforementioned provide a common anchor and framework for the insurance industry to manage ESG issues. This approach NAICOM boss stated, would enhance the industry’s contribution to building resilient, inclusive and sustainable communities and economies.
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