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By Henry Uche
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, recently welcomed Mr. Aiyub Omar, the High Commissioner of Malaysia to Nigeria, for a courtesy visit at his office in Abuja.
The primary objective of the visit was to facilitate the exchange of ideas and foster collaboration between NAICOM and the Malaysian High Commission, with a particular focus on Takaful insurance and capacity building within Nigeria’s insurance sector. Both parties sought to explore innovative solutions to enhance the growth and development of the industry.
To support this goal, the Commissioner for Insurance proposed the study of countries with similar socio-economic characteristics, particularly Malaysia, which has experienced remarkable growth in Takaful insurance over the past three decades. This approach, he suggested, would allow NAICOM to identify best practices, draw valuable lessons, and tailor successful strategies from markets with proven success in promoting Takaful. The insights gained could significantly bolster Nigeria’s efforts to advance its insurance sector, especially in the realm of alternative insurance models such as Takaful.
By exploring international models and benchmarking against industry leaders, the Commission aims to create a more conducive environment for insurance growth in Nigeria, ultimately benefiting policyholders and stakeholders alike.
The Commissioner further stressed the importance of knowledge sharing to replicate successful models in Nigeria, particularly in achieving President Bola Tinubu’s vision of a $1 trillion economy. This goal, aimed to be accomplished within eight years, relies heavily on collaborations with foreign governments, including Malaysia.
Given Nigeria’s low insurance penetration, the potential for growth and investment is substantial. Notably, the country has made progress in the Takaful insurance sector, expanding from a single company in 2013 to six companies currently under the National Insurance Commission’s regulation.
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To tap into this potential, Mr. Omosehin emphasized the need for knowledge sharing and strategic partnerships. By learning from Malaysia’s experiences and best practices, he maintained that Nigeria can accelerate its economic growth and development, ultimately achieving the ambitious goal of a $1 trillion economy.
The CFI brought to the Malaysian High Commissioner’s attention the newly passed insurance bill by the Senate, which now awaits concurrence from the House of Representatives. This bill is expected to significantly boost capital in the insurance industry and create new investment opportunities. By enhancing the regulatory framework, the bill seeks to promote the growth and development of the insurance industry in Nigeria, ultimately contributing to the country’s economic growth.
He described Malaysia’s Takaful Insurance Industry as phenomenal. He sought to unlock the secrets of Malaysia’s success in Takaful insurance development, calling for collaboration with Mr. Aiyub Omar, the Malaysian High Commissioner. This collaboration was accepted in two key areas: capacity building and investment opportunities.
The Malaysian High Commissioner in response who expressed gladness by the reception of NAICOM and expressed enthusiasm for collaboration. He highlighted Malaysia’s expertise in Takaful Insurance, emphasizing the potential for bilateral agreements to drive growth in Nigeria’s insurance industry, particularly in the Takaful sector.
Noting NAICOM’s strong interest in developing the industry, the High Commissioner pledged to facilitate connections between Malaysian Takaful insurance companies and Nigerian stakeholders, paving the way for further investment and cooperation. This partnership could leverage Malaysia’s experience in Takaful insurance, which has been a significant contributor to the country’s Islamic finance sector.
The Malaysian High Commissioner expressed interest in capacity building for NAICOM staff, proposing a training program led by Malaysian resource personnel. This program will aim to enhance the skills and knowledge of NAICOM staff as regulators, ultimately adding value to the Nigerian insurance industry.
This initiative aligns with NAICOM’s goals, which include strengthening supervisory capabilities, improving safety and soundness, and fostering innovation and sustainability in the Nigerian insurance industry. By collaborating with Malaysian experts, NAICOM can leverage international best practices to achieve these objectives.
Present in the meeting was the Deputy Commissioner Technical, Mr. Usman Jankara, Deputy Commissioner Finance and Administration, Mr. Ekerete Ola Gam-Ikon the Director, Legal and Enforcement & Market Development, Dr. Talmis Usman and others.
