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By Henry Uche [email protected]
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For many stakeholders, the immediate past Commissioner of Insurance, Mr. Sunday Thomas, achieved significant milestones from May 2, 2020, to May 16, 2024, including reaching N1 trillion in Gross Premium Income (GPI) for the insurance industry. Now, with the appointment of Mr. Olusegun Omosehin as the seventh Commissioner of Insurance on May 16, 2024, expectations are high to see the insurance sector grow exponentially.
On assumption of office on Thursday, May 16, 2024, as the seventh Commissioner of insurance, Mr. Omosehin, announced that he would launch into the deep to make impact and create lasting legacies by visiting and engaging critical stakeholders in the industry. The purpose of the visits was to forge alliance with shakers and movers of the industry to achieve the goals set before him.
Mr. Omosehin just recently embarked on stakeholders’ engagement by first, visiting the Nigerian Insurers Association (NIA) as the first and major point of contact to reach other stakeholders.
With a commitment to build a robust corporate governance, innovation, and an unwavering dedication to ethical practices, the NAICOM boss believe that reaching out to people that matter in the industry is sine qua non to transforming the sector. With his philosophy of ‘two good heads are better than one’, he believes in the principles of collective effort, harmony and shared vision. These not only ensure the longevity of the industry and other institutions in the sector, it also fosters trust and confidence among stakeholders.
He insists that his vision for the insurance industry aligns with President Bola Tinubu’s goal of propelling Nigeria towards a $1 trillion economy by 2030.
“We are an integral part of that financial service sector that must make Nigeria a $1 trillion economy by 2030 happen and that puts on us a very heavy burden to deliver”
At the NIA secretariat in Lagos, the Commissioner for Insurance (CFI) accompanied by his deputies; Dr. Usman Jankara and Dr. Olawoye Gam-Ikom, sued for collaborative efforts with NIA for the advancement of the insurance sector.
At the august visit, the Insurance Chief made a commitment to foster a robust and stable insurance industry that prioritizes the protection of policyholders and beneficiaries. He stated, “My mandate is to ensure a very safe, sound, and stable insurance sector that can protect policyholders, consumers, and build public trust in the insurance industry”
Omosehin further outlined his administration’s agenda which focuses on increasing insurance penetration, ensuring efficient and prompt claims settlements. He underscored the importance of compliance with industry regulations to achieve NAICOM’s vision and urged stakeholders to prioritize regulatory adherence.
In response, the Insurance Chief Executives, the Director General of NIA and other senior management team who received him listed their expectations from new sheriff. NIA told NAICOM that to realise the regulator’s long-term vision for the industry, there is need to revisit the placement of insurance business adverts for greater visibility and awareness, as well as sanctioning members involved in premium rate cutting to enforce compliance.
NIA posited that enforcing insurance for public buildings and construction projects owned by government, corporates and individuals is long overdue, if safety of life and property must be guaranteed.
They demanded, “NIA is already establishing a claims payment committee to facilitate prompt settlements, but we must enhance collaboration with government agencies for regulatory efficiency, and pursue the digitalizing of agency license processes for improved speed and convenience.
“Reconstituting the Insurance Industry Consultative Committee (IICC) to drive industry growth and development, supporting the implementation of the Nigerian Insurance Industry Portal (NIIP) for better digitalization and accessibility, as well as collaborating with PenCom on group life enforcement to ensure compliance, are some of our expectation” they stressed.
They added that there was need to establish a maximum retention period for claims records to improve data management, accelerating the approval of new products to drive innovation as well as considering industry perspectives in policymaking for inclusive decisions.
Other expectations tabled before the new sheriff of NAICOM are: Segmenting industry players to promote specialization and competitiveness; ensuring timely approval of principal officers for leadership stability; forming strategic partnerships with the government to boost economic growth; speeding up the transformation roadmap for timely implementation; promoting public-private sector collaboration in government business, and ensuring market discipline to promote a culture of compliance and accountability.
From NIA, the voyage of NAICOM sailed to Chartered Insurance Institute of Nigeria (CIIN), Secretariat. As a body established to determine the standard of knowledge and skill to be attained by a person seeking to become a regular member of the insurance profession, the Commissioner for Insurance called on CIIN to conscientiously collaborate with the regulator to grow the insurance sector.
NAICOM boss stated that the essence of the visit was to seek collaborative support from the Institute for his administration. “I don’t want to assume the needs of the Institute, despite being a former Council Member, it is pertinent that I come to the Secretariat, meet with the Council and the Industry elders to hear their opinions about moving the Insurance Industry forward under my watch as Commissioner,”
Moving forward, NAICOM boss and team navigated to the Secretariat of Association of Registered Insurance Agents of Nigeria (ARIAN). At the session, Omosehin told the executives of ARIAN that NAICOM is targeting 3 million new insurance agents to deepen penetration and grow the sector rapidly.
He noted that Nigeria with a population of over 230 million cannot be effectively served by the present number of active insurance agents which is about 50,000, hence the need for both NAICOM and ARAIN to work closely to shore-up the number of agents from 50,000 to 300,000 active member by the end of this year 2024 and subsequently move the number to 3 million.
He submitted that nations across the globe where insurance is thriving, agents act as catalyst, driving the growth, therefore, such similar steps need to be taken to grow insurance in Nigeria.
The National President ARIAN Olakunle Odewunmi, who appreciated the Commissioner for recognizing the role of agents in the insurance value chain urged the Commissioner to use his good office to address the issue of licensing of agents and weeding out fake agents. Among other challenges faced by agents, ARIAN president assured that his members would support every good steps taking by NAICOM to move the agency business forward.
Responding the Commissioner for Insurance promised to urgently address the challenges, pledging to ensure the issue of licensing is resolved sooner than later.
In the same spirit, NAICOM knocked on the door of Loss adjusters, in Lagos. In their discourse, the CFI reminded Loss Adjusters that they have critical role of building public confidence about insurance.
Omosehin put forward the Commission’s present vision to make public confidence in insurance the hallmark of the market operations, saying, “In building confidence in the Nigerian public it means claims settlement is critical. It involves the turnaround time it takes to pay; and even the efficiency involved in that entire value chain, revolves around those of us seated here, this rest heavily on loss adjusters”
The CFI said, “It therefore becomes critical that for us as a regulator we would get input from you in putting our vision together. We don’t want to assume that we know it all. We want to hear from you.
“In crafting the strategy that will drive the current new executive, it is important that we have one on one discourse to listen to your views, perspectives, insights and possibly give us top three priorities which from our perspective is key to seeing a virile insurance sector, a sector that can really de-risk this economy. In doing this it behooves on all of us across the entire sector to play our part”
The President of ILAN, Diipo Olarenwaju while supporting the drive to build public confidence and responsibility, reminded the Commissioner that there are still hurdles too difficult for loss adjusters to leap over. First was the issue of insurance companies’ adamant to the review of the 32 year old Scale of Fees, saying, “We have approached our principals to let them reason with us for a review but nothing significant has emerged, we have not received anything concrete, but a promise not officially communicated to us.”
Olarenwaju said if the issue was not arrested soon it might lead to the extinction of the loss adjusting arm. Already, he said the sector is loosing their well trained staff to insurance companies because they cannot pay to keep them and the non review of the Scale of Fees and sundry issues like delay in paying loss adjusters fees even after the claim has been paid. All these, he maintained are not only annoying, but discouraging.
The Loss Adjusters president also asked for the intervention of the Commission when the yet- to- be- treated issue of Charter comes up again. He revealed that forces beyond the control of ILAN will not allow Loss Adjusters have their Charter through the legal process of the National Assembly.
Still in the drive to get the buy-in of stakeholders, NAICOM boss paid a courtesy visit to the Inspector General of Police, Mr. Kayode Adeolu Egbetokun, at the Force Headquarters in Abuja.
The purpose of the visit was to seek an audience with the IGP and the management of the Nigerian Police Force (NPF), who are critical stakeholders to aligned with NAICOM’s vision, to achieve its mandate, particularly in the area of compulsory insurance enforcement.
During the visit, the Commissioner for Insurance sought Police’s collaboration to advance the Nigerian insurance sector roadmap. He emphasised that it is unlawful for individuals to drive on the road without valid motor insurance (3rd party). He noted that less than a quarter of the vehicles in Nigeria roads have valid motor insurance, hence the need for the enforcement of compulsory 3rd party motor insurance, as mandated by law.
The CFI highlighted that in 2023, the ECOWAS Brown card was captured in the upgraded premium for 3rd party motor insurance cover by NAICOM, allowing insured vehicles to travel across the West African sub-region, noting that the benefits attached to the 3rd party insurance had been increased to N3 million.
To further this initiative, the CFI underscored the need for digitisation platforms to authenticate the validity of vehicle insurance. He mentioned that this system is already being implemented by the Lagos State government.
He requested the establishment of a team to collaborate with the Commission in conducting enforcement actions, asserting that the success of this initiative would be a significant achievement for Nigeria.
In response, the IGP assured the CFI of the Nigerian Police Force’s full support in enforcing compulsory 3rd party insurance. He announced that a team, headed by the DIG Operations, would be set up to oversee the enforcement of compulsory insurance.
Still in his quest to get everyone involved, the Commissioner for Insurance, at the 2024 Nigeria Council of Registered Insurance Brokers (NCRIB) CEO’s Retreat held in Uyo recently, emphasised the need to build strong and enduring institutions amidst current economic challenges.
Represented by the Deputy Commissioner, Mr. Ekerete Olawoye Gam-Ikon, the CFI maintained that the kind of institutions needed at this critical time are those which would outlive their founders with solid foundation for sustainability, resilience, and continuous excellence which shall become the pillars of strength for insurance community to guide it times of change and uncertainty.
With the theme “Building Institutions That Survive Their Promoters” the Commissioner noted that at NAICOM, there is a deep commitment to creating lasting legacies. According to him, the commitment is built on robust governance, innovation, and an unwavering dedication to ethical practices. “These principles not only ensure the longevity of institutions but also foster trust and confidence among stakeholders.”
He highlighted the crucial role insurance brokers’ play in this regard, noting that, as intermediaries who facilitate critical financial protection, brokers are instrumental in promoting stability and security whose efforts contribute to a safer and more predictable environment for businesses and individuals alike. He expressed confidence that the discussions and insights shared during the retreat would illuminate strategies and best practices to ensure that the institutions built today will thrive for generations to come.
He urged everyone participants to use the opportunity to learn from each other, and reinforce the insurance industry’s collective mission to create sustainable futures.
In all, NAICOM boss stressed that President Tinubu desire for Nigeria’s economy to hit $1 trillion by 2030, with a big chunk coming from the insurance industry. Acknowledging the challenges ahead, Omosehin reassured stakeholders of the commission’s unwavering commitment to upholding utmost probity in ensuring a safe, sound, and stable insurance sector.
Quoting President Tinubu, he underscored the mandate entrusted to the commission, emphasizing his (Omosehin) transition from operator to regulator.
“We are committed to exercising utmost probity in ensuring a safe sound and stable insurance sector while protecting policyholders, and public interests as well as improving trust and confidence in the Nigerian insurance sector,” Omosehin affirmed.
He called for collective optimism and dedication as the industry navigates this new chapter. He noted the importance of embracing innovation, leveraging technology, and fostering a culture of excellence to enhance processes and meet regulatory obligations effectively.
Recognizing the pivotal role of the NAICOM in shaping the Nigerian insurance landscape and safeguarding policyholders’ interests, Mr. Omosehin stressed that social responsibility is essential in the insurance business. He vowed to strengthen the industry’s social safety net to ensure its reliability and accessibility to all Nigerians.
With this move which appears promising to the industry, experts and industry watchers have wished the Commissioner well, however urged him to stick to his vision and focused remain on course no matter what may happen in the national or global economy. For them, the end of Mr. Omosehin’s tenure would justify his emergency as the 7th Commissioner for Insurance, whom president Bola Tinubu deemed fit and proper to turn around the industry as a major contributor to economic growth and development.
