Insurance

NAICOM unveils insurance industry’s 2020 agenda

Thomas

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has identified major initiatives it will leverage to propel the insurance industry forward this year.

The Acting Commissioner for Insurance, Sunday Thomas, who unveiled the initiatives at the 2020 NAICOM seminar for insurance journalists in Kano, Kano State, stated that the Commission is shifting focus from compliance issues to emphasise more of its market developmental responsibility.

“As the Year 2020 continues to unfold, giant strides will be made by the Commission in all aspects of its statutory responsibilities. This is the time to put the past behind us and look forward to a better and more vibrant sector.

The task of building an insurance sector of our dreams is a collective one and thus, all hands must be on deck to ensure our dreams become realities,” he said.

Conducive Work Environment

We recognise the impact of conducive work environment to effective and efficient regulatory system and this will always remain our priority.

Market Development and Restructuring Initiative

The second phase of the MDRI will soon be unveiled and it will mark out clear targets and tasks for all stakeholders in the industry.

Implementation of Compulsory Insurances

Going forward, we shall vigorously pursue 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.

From left: Adamu Balanti; Thomas and Olufemi Oluniyi Oba at the event.

Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic National Assets. We will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.

Recapitalisation

The initiative to recapitalise the insurance sector is no longer news. The essence of the recapitalisation is a move 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.

Let me state in clear terms that the recapitalization process is up and running in line with the roadmap and the Commission will see to its logical conclusion come December 31, 2020.

Financial Inclusion Strategy

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.

Building Public Trust and Confidence

The Commission shall continue to deploy more energy and resources in building public trust and confidence in insurance despite years of poor perception. In this regards, your optimum support is required as whatever you write or report about the industry will go a long way in building or destroying the fragile image of the sector. I will therefore implore you to carryout thorough investigation before writing or reporting any contentious issue about the sector. You are all professionals and we have so much respect for you in that regard.

Annuity

The annuity business made headlines recently with a boost in the contribution of the business to the sector. The public is becoming more exposed and knowledgeable about the workings of Annuity, this we expect will continue as the future is looking very bright for the business as we have witnessed. This has also shown a positive growth in trust and confidence in the sector.

Claims Payment

The Commission is committed to ensuring financial soundness and viability of the insurers and the adequate protection of policyholders at all times. These will continue to be part of our regulatory priorities. We will continue to ensure that genuine claims are promptly paid while also ensuring a reasonable protection of investments of shareholders.

Protection of Policyholders

In demonstrating its willingness to protect the policyholders, the Commission has further strengthened its Complaint Bureau Unit to respond to public complaints over claims settlement. Available statistics have shown that there have been great improvement in this area.

Product Pricing

Ensuring the right pricing of insurance products and effective deployment of technology for ease of transaction are among the key areas the Commission will be emphasising this year.

Digitalisation

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.

Reforms

The Commission shall in the course of the year will continue to introduce new reforms and initiatives in line with international best practices for attaining the level of growth and development we all desire for the sector.

Thomas commended all stakeholders for their contributions and supports in the preceding years while also looking forward to a better working relationship and continuous collaboration with them on a sustainable basis.

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