NAICOM explore ways to take insurance sector beyond other financial sectors

Determined to upscale the relevance of insurance sector as gatekeeper for other businesses to exist in the economy, the National Insurance Commission (NAICOM) has created avenues to deepen insurance penetration to increase access to influence products via digital platforms, increasing visibility of insurance across the nooks and crannies of the country.

The Commissioner for Insurance, Olorundare Sunday Thomas, in his keynote address at the retreat for financial journalist held in Uyo, Akwa Ibom State on Friday, with the theme “Improving insurance access through market development and innovation in 2022 and beyond” said is specially couched to consolidate on his administration’s cardinal agenda of developing the market and deepening penetration.

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According to him, “our collective efforts at ensuring the development and growth of the insurance sector, will definitely translate to the growth and development of the nation’s economy.

According to the NAICOM boss “We can gladly say that the Nigerian Insurance market has undergone substantial structural and regulatory reforms over the years following the market development initiatives being implemented and the evolution of Nigeria’s financial sector in the last decade which has been characterized by digital transformation.

The Commission is trying to open up the market across the geo-political zones by reaching out to the states where insurance penetration is perceived to be very low. We expect the industry to respond to these efforts by bridging the supply gap and ensure they follow up on the Commission’s move to create awareness among high ranking policy makers in order to prove that the industry is ready for the booming opportunities awaiting them across the country.”

He said “The Nigerian Bureau of Statistics figures has shown that the sector has recorded positive increase in almost all parameters and have rated the sector as one of the fastest growing sectors in activities. Even though we are climbing the ladder, we all know that there is need for us to do much better as our potentials are huge.”

“Our efforts in the development of the market is an all inclusive one from the creation of avenues to deepen insurance penetration to increasing access to insurance products via digital platforms and increasing visibility of insurance across the nooks and crannies of the country.”

“The Commission recently partnered with Financial Sector Deepening Africa, FSD Africa to launch the Bimalab Nigeria, a program aimed at accelerating the insurtech innovation. Let me inform you that the Commission will soon be unveiling the Commission’s sandbox to give room for innovative expansion of insurance reach out. The web aggregators’ guideline is also aimed at opening access to insurance and also a means of creating a convenient market for insurance.”

“As you can see so far, the Commission is focusing on using technology to boost access to insurance as that seems the way to go under the prevailing circumstance. We are exploring ways to take insurance to where the other financial sectors are or even surpass that mark. Financial transactions are more of a one-stop shop for everything and is either we key in or we lose the business to more innovative outlets that will seize it from us.”

Above all, he said “Claims payment has always been one aspect the industry is battling to balance. We all agree that we cannot claim ignorance of the fact that the industry is paying huge claims out there even though activities of few amongst the operators is jeopardising the efforts of the majority. We had before now agreed to start ranking companies on the number of claims received and settled on annual basis and we intend to publish such ranking for the insurance consumers. It is always an issue that put the entire industry on the edge. The Commission is doing all it can to see that the non-settlement of claims is brought to its barest minimum in the sector.”

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