With humble beginning in 2009, the National Insurance Commission (NAICOM) has expressed it’s commitment to lift insurance practice in Nigeria to what is applicable in the developed markets.
For instance, the Commission has mapped out strategies to ensure that the industry raised the gross premium income from N630 billion in 2021 to N6.0 trillion by 2030 and create 250,000 new jobs.
The Head, Corporate Communications & Market Development, AbdulRasaaq Salami, in a paper titled “NAICOM’s Market Development Initiatives, the journey so far”, he presented at the, 2022 retreat for financial journalists in Uyo, Akwa Ibom State last week organized by NAICOM, said that the program would improve insurance consumers trust and confidence in the sector.
According to him, the strategic plans includes market conduct guideline: bancassurance guideline; Takaful insurance guideline; micro-insurance guideline; RBS framework/Own Risk Assessment (ORSA); Nigerian Insurance Industry ICT guideline; as strategies the industry would apply to achieve the desired growth.
Others are Guideline on Insurance of Government Assets; Insurance Web Aggregators Operational guideline; establishment of Liaison with target state government – Lagos, Ekiti, Kano, and others; implementation machineries in place; sensitisation of NMSMEs on insurance products and benefits inherent in their consumption – Kano, Abuja, Lagos and insurance education of members of the public at the rudimental level (Sponsorship of radio and TV programmes).
Salami expressed optimism that the structures will also see to the improvement of insurance consumer trust and confidence in the sector, increase insurance contribution to Gross Domestic Product (GDP) from 0.4 per cent to over 3.0 per cent; lower insurance gap from 94 per cent to 70 per cent and increase Industry Gross Premium Income from N630 billion in 2021 to N6.0 trillion by 2030.
He said market development is a costly affair and requires huge capital to keep going thus, funding is critical, adding that however, NAICOM will continue to work with all stakeholders to develop strategic, sustainable and implementable initiatives for deepening insurance penetration to enable optimal contribution to the Nigerian economy.
Salami submitted that various actions to expand the reach or tap into a different segment/unexplored market (Retail end) and, other activities aimed at achieving insurance market development, have been put in place.
He said NAICOM will not work in isolation of all stakeholders while assuring that the commission will continue to work with all stakeholders to develop strategic, sustainable and implementable initiatives for deepening insurance penetration to enable optimal contribution to the Nigerian economy.
He noted that NAICOM has put in place structures to promote insurance as a tool for stimulating the growth of other sectors and raise funds for project development at the Federal and State levels, so as to create over 250,000 new jobs.
Continuing, he also identified, licensed four Takaful insurance companies and six Microinsurance companies to transact businesses in Nigeria; processing of other four Microinsurance and three Takaful applications at various approval stages; collaboration and written approval of the Inspector General of Police (IGP) to partner the Commission on its enforcement of compulsory insurances across the country.
He mentioned some of the achievements of the Commission to include Sensitisation of Directors and Insurance Desk Officers of MDAs; Joint committees established with MFCT on one hand and the Federal Ministry of Transport on the other; joint engagements with the Federal and State Fire Services for the commencement of enforcement of Public Building Liability Insurance and interface with the FRSC to strengthen implementation of the compulsory 3rd party motor Insurance.
Salami also identified licensing & authorization module of NAICOM Portal which he said has been completed and deployed; commenced development of the Supervisory Returns Phase of the Portal and launched of the Insurtech accelerator platform – Bimalab Nigeria project on 9th February 2022 in partnership with the Financial Sector Deepening (FSD) Africa as some of the Commission’s achievements