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By Henry Uche, [email protected]
When President Bola Tinub announced the appointment of Mr. Olusegun Omosehin as the Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM), some industry stakeholders expressed confidence in him, while others said they would give their verdict after he must have spent some time at the helm.
Omosehin took over from Mr. Sunday Thomas who was appointed as acting commissioner in July 2019 after his tenure as deputy commissioner for insurance- technical in April 2017 and was confirmed as commissioner on May 2nd, 2020.
Thomas’ recorded significant achievements during his tenure, causing many to assume he would be appointed for a second term. Surprisingly however, he was shown the exit after he completed his first term, though not without praises from the industry.
For Omosehin, the new insurance chief, until his recent appointment, he was the Managing Director/Chief Executive Officer of Old Mutual Nigeria Life Assurance Company Limited and the Chairman of Nigerian Insurers Association (NIA).
Before him, six commissioners had emerged with each of them recording a unique feat for the industry during their tenures. As he takes over the reigns of the regulatory agency as the seventh insurance commissioner to oversee the affairs of NAICOM since its establishment in 1997 by the National Insurance Commission Act, operators and stakeholders have implored him to roll his sleeves for the onerous tasks ahead of him.
An insurance expert who spoke anonymously with Daily Sun on his expectations from the new NAICOM boss, said he would rather ask Mr. Omosehin to tell operators what he has to offer for the growth of the industry, then proceed to lay bare his expectations.
Cooperation among operators
According to the expert, some operators are cutting corners particularly with respect to third party motor insurance and are involved in some shady acts, inimical to the industry. This, he said must be addressed.
Impact of doyens of the industry
The need to develop the sector under review for the younger generation was top of the list for the NAICOM boss to look into.
To him, it’s not enough to put on the toga of ‘Fellowship of the Industry’, when the industry is still relegated and tagged ‘the pitiable younger brother of the banking sector’. He said mentorship is highly pivotal in guiding the next generation towards excellence and ethical practice.
The designation, ‘Fellow’ of the Industry”, is the highest rank of professionalism in the industry which is bestowed on practitioners and members of Chartered Insurance Institute of Nigeria (CIIN) who have distinguished themselves.
“Of what use or value is it to be a fellow of the institute and industry when the younger generation are not motivated to join us?” he queried.
Insurance should be incorporated into financial inclusion campaign
He said it is sad that whenever financial inclusion is mentioned, people’s minds go to the banking sector. “Why should it be so? In developed economies, insurance companies own the banks, but here, the banks own insurance companies. Is it worth celebrating that about 59 insurance companies in Nigeria are celebrating N1 trillion Gross Premium Income (GPI), whereas one bank alone has recorded N17 trillion asset base? How do you make people know that insurance is an integral part of their life?
Cutting the excesses of insurance brokers
The expert said that some brokers have turned themselves into demigods, while some have formed the habit of taxing operators to foot their private bills like paying for their travel expenses.
“Brokers are like kings. It’s quite appalling what they do. You see brokers sending us letters to come and buy them tickets to watch African Magic because they are bringing us business from which they would still be paid commission. In a sane clime, such action can take such broker to jail. These are just little of what they do.
“For loss adjusters, who is monitoring them? Every focus is on the operators. We need to sanitise the sector because some of them are still cutting corners. How do you expect the industry to grow in such an environment?” he questioned.
No premium, no cover
The new NAICOM boss should enforce the policy of ‘No Premium, No Cover.’ The 30 days bailout is not helping us. They use that grace to do sharp practices. let the new CFI ensure that the new premium Cover regime subsists. No insurance broker should given a credit loan for any business. We need a lot of sanitisation here.
Fair playing ground
“I have not seen any insurance financial report for 2023 because many operators don’t understand the modalities. We spent millions to understand and study IFRS 17 and we hired Actuary. All these comes with a cost. Something should be done in this regard,” he stressed.
Insurance of government properties
“How many ministries, departments, agencies and parastatals of government are insured? How many of them patronise insurance companies? If they’re all patronising insurance, we would have hit N1 trillion GPI years ago. Which insurance company insured Aso Rock, who takes the liability? Is Aso Rock not maintained by taxpayers money? Which government house in Nigeria is insured? When the unfortunate happens, they use public funds to fix the damage,” he said.
He called on the NAICOM chief to present his roadmap, and wished that non- insurance practitioners who have been in the sector for decades and understand the terrain are given the opportunity to restore the glory of insurance in Nigeria as obtained in other developed economies.
Appointment of CFI shouldn’t be a mere political pronouncement
The expert added that, to achieve expected results anywhere in the world, appointment of persons shouldn’t be a political pronouncement, but by a due professional procedure.
Other stakeholders including insurance analysts and commentators equally put their expectations before the new commissioner. Some said the NAICOM boss should carry out sensitisation programs to educate Nigerians who still hold a negative perception about the genuineness of insurance business in Nigeria. He said if the insurance boss acheives this, his tenure would go down the memory lane for centuries as one who was able to disabuse the minds of Nigerians about insurance.
This, they said, would be measured by the number of Gross Premium Written (GPW), total industry assets, claims payments and other achievements at the end of his tenure and number of Nigerians added into the insurance net.
“Omosehin’s administration would be measured at the end of his term as the best so far, or otherwise by the results he puts out there in the market.
“The Gross Premium Written (GPW), increase in total Industry assets, number of claims payments and the number of more Nigerians drawn into the insurance, as would be recorded in figures at the end of his tenure.
“When Nigerians begin to embrace insurance not only as a safety net in time of misfortunes, but as part of financial inclusion strategy, that is when we shall say yes, he did well, but then, he would do this by erasing that negative perception people have about insurance business in Nigeria.
“The trust and confidence deficit is a taxing job to do at this critical time because Nigerians are very hungry, so this is not the right time to convince anyone to buy insurance for his own good. They need to eat first before any other thing. However, it’s a task that must be done else the industry would not grow. So he needs to think very deep how to change this ugly narrative that have eroded the benefits of insurance” an insurance analyst said.
On a strategic move to help the NAICOM Chief succeed, the Governing Council of the Nigerian Insurers Association (NIA) led by the incoming Chairman, Mr. Kunle Ahmed, paid a courtesy visit to the Commission last week.
During the meeting, the NIA incoming Chairman congratulated the recently appointed Executive Management and expressed gratitude to the Commission for its pivotal role in maintaining a fair and stable insurance sector.
He emphasized the importance of initiating the implementation of the ten-year strategic plan and finalizing the consolidated insurance bill. Furthermore, he expressed willingness to collaborate with the new executive, expressing confidence in their ability to elevate the insurance sector to greater heights.
The NIA delegation was briefed on the Commission’s ongoing review of its strategic plan to align it with the Nigerian Insurance Industry’s ten-year strategic plan.
The Commissioner for Insurance assured NIA of his continued collaboration to safeguard consumer rights, particularly in ensuring the prompt settlement of genuine claims. He affirmed the Executive Management’s ambition to drive growth in the Nigerian Insurance Market.
Overall, the meeting showcased a collaborative spirit between NAICOM and NIA, highlighting a shared commitment to advancing the insurance sector and protecting the interests of consumers.
