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Chiamaka Ajeamo
As part of measures to enhance insurance services and deepen insurance penetration in the country, the industry regulator; the National Insurance Commission (NAICOM) has said it would concentrate on developing the insurance market this year.
The Acting commissioner for Insurance, Sunday Thomas, disclosed this at the 2020 seminar for insurance journalists held in Kano.
Thomas also stated that the second phase of the Market Development Restructuring Initiative (MDRI) will soon be unveiled and according to him, would mark out clear targets and tasks for all stakeholders in the industry.
He noted that henceforth, the commission will be vigorously pursuing the continued implementation of compulsory insurances in every nook and crannies of the country.
“We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance thus far hence, our resolve to work with relevant stakeholders to ensure a seamless drive. Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic National Assets.”
Going further, he added that ensuring that the right pricing of insurance products and effective deployment of technology for ease of transaction were among the key areas the commission will be emphasizing this year.
He stressed that 2020 is a year to turnaround the fortunes of the industry and this cannot be accomplished without digitalising the processes and encouraging the industry to imbibe same.
“Digitalisation of insurance business is no longer an option, but an imperative which we all have to work towards its actualisation. As we may all be aware, the industry is currently lagging behind other financial services sectors in this area.
“The commission is working vigorously to see that all its operations are digitalised. The year 2020 is a year for us to turnaround the fortunes of the industry and this cannot be accomplished without digitalising our processes and encouraging the industry to imbibe same”, said Thomas.
Speaking on other plans for 2020, he said, the commission will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.
On recapitalisation, he said the essence is to ensure that the industry becomes more robust in its technical competence and financial base, building confidence, trust and enhancing market value. This is aimed at repositioning the sector for self-actualization in terms of growth and development.
“The financial inclusion strategy has been central to the Federal Government developmental plan and the commission has over the years invested hugely in the development of financial inclusion mechanisms which includes the introduction of Microinsurance and Takaful Insurance products. The introduction of these lines of insurance is intended to deepen the penetration of insurance in the country and bring into the fold majority of the populace that are hitherto excluded. So far, some milestones have been recorded in this regard with three standalone Microinsurance and four Takaful insurance companies already granted approvals.”
He assured that the commission is committed to ensuring financial soundness and viability of the insurers and the adequate protection of policyholders at all times. These, he said will continue to be part of regulatory priorities.
