The National Insurance Commission (NAICOM) has set the ESG challenge for directors of insurance companies, urging them to note that sustainability reporting is becoming more and more sought for not just by governments through regulations, but also by stakeholders such as investors, consumers, and employees.
The Commissioner for Insurance, Sunday Thomas served the embracing view of ESG at the 2022 Insurance Directors Confab held today at Radisson Blu Ikeja. Matching the theme, “Transforming the Insurance Industry Through ESG Principles: Directors’ Roles” further, he said there has been an increase by companies all over the globe to incorporate sustainability in long-term development strategies as well their day to day operations.
Expressing the involvement of the Commission in ESG, Thomas said, “As your regulator, it’s our responsibility to draw your attention to this development and to continuously encourage you to comply with the principles in the best interest of your companies and the larger insurance sector.”
He expounded the principles to include knocking in environmental, social and governance issues in decision-making, and; working with other stakeholders to raise awareness on environmental, social and governance issues, manage risk and develop solutions in the conduct of insurance business in Nigeria.
ESG he explained further, entails a joint work with government at all levels, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues in the insurance sector.
ESG he continued, will accentuate accountability and transparency in regularly discussing publicly progress in implementing these principles to relevant institutions responsible for; monitoring and evaluation of compliance and; carrying out survey and research among stakeholders (NAICOM. SEC FRC).
With the plethora of changes continuously wired into the insurance globally causing disruptions beyond the digital space, these changes are also being staged by harsh market conditions, demanding customers, innovative new market entrants and regulations, everyone of these challenges singly or combined he intoned, have inherent transformation pills.
Thomas therefore submit, “it is imperative that as an industry, we take precautionary measures by raising awareness within ourselves on the potential sustainability impacts of business transactions, and integrating these considerations into pre-emptive and holistic risk management processes.”