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By Henry Uche, [email protected]
Amid high expectations from stakeholders, the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, is pooling strategies, setting timelines and administering new policies to take the industry to the next level.
These come amid complexities and volatilities of the global business environment.
But Omosehin insists challenges should not impair the sector, but remain a propellant to trudge on.
He expressed his determination to strengthen the industry and restore public confidence in insurance.
These were the takeaways from the 21st edition of the Insurance Professionals’ Forum organised by the Chartered Insurance Institute of Nigeria (CIIN) which was held recently in Ogun State. Omosehin, who was represented at the event by the Deputy Commissioner for Insurance, Finance, and Administration, Mr. Ekerete Ola Gam-Ikon, outlined NAICOM’s new strategic priorities. The five key focus areas are designed to drive the transformation of the insurance industry in Nigeria.
The first centers on safeguarding policyholders and boosting confidence, where NAICOM said it is committed to protecting the rights of policyholders by ensuring the prompt settlement of genuine claims and improving the overall credibility of the industry.
Another is enhancing supervisory capabilities and entails strengthening regulatory oversight and organisational effectiveness is a key objective, ensuring that the Commission can efficiently monitor and regulate the activities of insurers.
The third one is promoting safety and soundness where the Commission aims to ensure the financial stability of the Nigerian insurance industry by adopting risk-based supervision and capital requirements.
Another key move is fostering innovation and sustainability and that centers on recognising the importance of innovation in a rapidly changing market, NAICOM, by this, is prioritising the development of products that cater to evolving consumer needs and preferences, while also promoting sustainability within the industry.
The fifth one is improving insurance accessibility and penetration by increasing insurance penetration across Nigeria is a central focus, with efforts to make insurance products more accessible to individuals and businesses nationwide.
Omosehin also revealed that as part of its efforts to drive innovation, NAICOM has established a new Directorate for innovation and regulation.
The new arm will play a critical role in fostering creative solutions and regulatory frameworks that meet the dynamic needs of the insurance market, ensuring the satisfaction of consumers and industry stakeholders alike.
Strategic plan and transformation agenda
Omosehin highlighted the importance of the “Nigerian Insurance Industry 10-Year Transformation Roadmap,” which serves as a framework for guiding the industry’s growth over the next decade. This roadmap underscores the urgency of expanding the scope of insurance operations and deepening market reach.
He also unveiled NAICOM’s newly developed four-year strategic plan (2024 – 2027), which aligns with the transformation roadmap while taking into account current macroeconomic realities in Nigeria.
Omosehin stressed that the Commission’s policy thrusts will be shaped by these priorities, which are designed to enhance regulatory effectiveness and drive the industry’s modernisation.
“The transformation of the regulatory environment is central to the success of our strategic plan,” he noted. “NAICOM is undergoing significant structural and administrative reforms to ensure we remain agile and effective in an increasingly complex business landscape. These reforms will impact every aspect of our operations as a regulator.”
Adapting to global realities
The Commissioner acknowledged the profound impact of global events such as the COVID-19 pandemic, economic instability, climate change, technological advancements, and inflation on the financial services industry. These factors have altered the way financial institutions operate, making risk management and financial stability more crucial than ever.
“Financial soundness is key to the success of our industry. We have resolved to prioritize the safety and soundness of regulated entities to protect the interests of policyholders and investors alike,” Omosehin stated. “A strong financial base is essential if we are to compete on the global stage.”
Embracing innovation and sustainability
Recognising the rapid pace of market changes, Omosehin emphasized the need for the insurance sector to embrace innovation.
The Commission has introduced a regulatory sandbox to encourage creative solutions and has created a dedicated Innovation-Hub Unit to address gaps in regulation and market expansion.
“Innovation is no longer optional; it is the lifeblood of the financial services sector,” he said. “To meet the demands of a diverse and evolving market, we must develop new skill sets, attract talent, diversify our product offerings, and invest in technology.”
Omosehin stressed that increasing trust and transparency within the industry is critical to deepening insurance penetration. He called on industry professionals to conduct their business with integrity, ensuring that the public views insurance as a reliable and essential service.
Call for strong governance and stakeholder collaboration
Omosehin highlighted the importance of strong corporate governance, noting that the quality of decisions made by insurance operators will determine the long-term viability of their businesses. He urged stakeholders to adopt best practices in corporate governance, warning that poor governance could undermine the industry’s credibility.
Omosehin also called for the cooperation and support of all industry players in implementing the transformation strategies that will drive growth and development. “We must stand united, resilient, and focused if we are to build a stronger, more competitive insurance industry that contributes meaningfully to Nigeria’s economic progress,” he affirmed.
Industry watchers note that as NAICOM rolls out its ambitious plans, the industry is set for a period of significant transformation, driven by innovation, regulatory reforms, and a renewed focus on policyholder protection and market expansion. The Commission’s strategic priorities offer a clear path forward for an industry poised to play a vital role in Nigeria’s financial ecosystem.
