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By Henry Uche
An industry expert and Chairman of the Nigerian Insurers Association (NIA), Gus Wiggle, has called for a paradigm shift in the sector in 2025, urging stakeholders to embrace a client-centric approach in order to rebuild trust, enhance innovation and drive sustainable growth.
Highlighting the challenges of trust deficits and outdated practices, he emphasised the need for collaboration and innovation to position the industry as a key driver of economic transformation.
According to him, it is time for every stakeholder to sit up as they have a lot to contribute to ensure a more robust, transparent and trusted insurance sector.
Each player, he noted, has a pivotal role to play in ensuring the industry’s growth and sustainability because 2025 offers a unique opportunity for the Nigerian insurance industry to grow.
Wiggle, who is also the Principal Consultant at Carefirst Consult, quoted the Commissioner for Insurance, Mr. Olusegun Omoshehin, saying: “The lack of trust is one of the challenges confronting the insurance industry. To overcome this, we need to create a culture of trust, giving Nigerians every reason to believe in our ability to deliver on our promises.”
He speaks more on the insurance industry and how to make the best of 2025.
Addressing trust deficit
To me, there is a trust deficit in the insurance industry. So, perhaps, we can start to build that trust from here in 2025. I believe the current team, led by Mr. Omoshehin, is making the building of trust one of his top priorities for any significant stride to happen in the insurance industry, and I hope everyone will give him the required support.
Expectations from NAICOM
There are so many items on the plate of the Commission that give hope for a new insurance landscape in Nigeria. However, my expectations from the sector will be that of cautious optimism. I say this with all sense of responsibility as a player. I will therefore want to manage my expectations. Starting with the regulator, I look forward to their strengthening regulatory frameworks to enhance transparency, enforcement of corporate governance and consumer protection, and sanctioning any erring institution that fails to meet the minimum. Implement regular audits and inspections to ensure insurance companies comply with the updated regulations.
They should be able to promote the adoption of innovative insurance products and services. The time it takes to approve new products should be minimized. Create incentives for insurers to develop new products, such as microinsurance and parametric insurance, tailored to the needs of underserved populations.
It must ensure compliance with the Risk-Based Capital and the new Insurance Industry Reform Bill 2024, which I hope will be passed into law in 2025. NAICOM should launch awareness campaigns to educate consumers about their rights and the benefits of insurance, fostering trust in the industry.
Expectations from brokers
As for the insurance brokers, they should continue their role as a bridge between insurers and consumers, providing unbiased advice and support, and enhancing customer service and satisfaction.
In 2025 and beyond, I want to see the adoption of a more client-focused strategy by understanding and addressing the specific needs of clients. Very few of them align with this practice. It’s time for the brokers to invest in continuous training for their employees to stay updated on industry trends and regulatory changes. Sometimes, I wonder what they go and learn on their annual visits to BIBA because I have not seen any translation in their practice when compared to the London market. I want to see the brokers and agents continue to uphold high ethical standards to build and maintain trust with clients since they are the first line of contact with the consumers.
Insurance companies’ expectations
The big elephant in the room is the operators under the aegis of the Nigerian Insurers Association (NIA).
The late Abiola used to make a common parable that you cannot clap with one hand. You will recall I said earlier that the year 2025 offers a unique opportunity for the Nigerian insurance industry to make significant strides. This significant stride can only happen if the NIA, NCRIB, and NAICOM strike the same chord. I am aware the NIA has always positioned itself to work with the regulator, but that relationship should be more transparent going forward, without either party being suspicious of the other’s intention. More particularly, the NIA should work closely with NAICOM and other regulatory bodies to ensure favorable policies for industry growth and share best practices and resources.
College of Insurance
I honestly don’t have full knowledge of what is happening at The College of Insurance and Financial Management, but I am aware they provide top-tier education and training to produce skilled professionals. Hopefully, they will be able to drive research and development in the insurance sector and continue to offer specialized courses and certifications to help professionals advance their careers in the new year and going forward.
The loss adjusters
Loss adjusting seems to be the sick baby in the insurance sector, and so much blame on the trust issue resides with them. I may be wrong, but that’s my perception. I therefore expect that going into the new year, the leadership of the loss adjusting firms will re-strategize and provide accurate and fair assessments of claims, and also maintain impartiality and integrity in their evaluations to build trust among all parties involved. It is about time the loss adjusters in Nigeria integrated technology such as drones and AI for accurate damage assessment and stayed updated with industry standards and practices through regular training.
The media
On a final expectation for 2025, the media has a role to play in the collaborative, innovative, and consumer-focused approach to a more robust, transparent insurance industry by serving as the watchdogs of the industry, holding stakeholders accountable, and providing accurate and balanced information to the public by conducting in-depth investigations to uncover any malpractice or inefficiencies within the industry. Finally, work with industry stakeholders to highlight success stories and best practices within the industry. There should be no selective reporting of any of the operating arms of the insurance industry. My final thought is to see 2025 as a landmark year for positive change in the insurance industry in Nigeria.
