Insurance as a catalyst to economic development is expected to feature prominently in attaining the projected federal government $1 trillion economy by 2026. Chuks Udo Okonta, in this report, examines expectations from industry players in the match towards this national quest.
The federal government ambition to grow a $1 trillion economy by 2026, remains a wakeup call for all Nigerians to redouble their efforts and contributions to the country’s growth.
As Nigerians match toward this audacious $1 trillion economy dream, they require a risk management tool essential for individuals and businesses to thrive, ensuring stability and continuity in economic activities. This is where insurance comes in.
Insurance which is one of the best risk mitigating elements is required to stand firmly and boldly in providing the necessary support for government, businesses and individuals as they work assiduously to make the target a reality.
The insurance industry in Nigeria, which is being looked upon to play a pivotal role in this anticipated growth, has two prominent players – regulator and practitioners that should live to their responsibilities in making this dream a reality.
Role of insurance regulator
The insurance industry regulator – National Insurance Commission (NAICOM), on whose shoulders rest regulatory activities in the sector and which also stands as an agency of government, is expected to communicate and drive the vision of government as it relates to insurance in this policy thrust.
In doing this, the Commissioner for Insurance Olusegun Ayo Omosehin, who understands the task before the Commission is aligning the insurance sector with President Bola Ahmed Tinubu ambitious goal of growing the Nigerian economy to $1 trillion and has expressed the insurance sector’s intent to significantly contribute to this objective.
He has also continued to reaffirm the critical role of the insurance sector regulator in supervising, regulating, and safeguarding the interests of insurance policyholders, while highlighting insurance’s pivotal role in mobilising savings for long-term developmental projects and enabling businesses to thrive while managing risks effectively.
Aside the belief and assurances, Omosehin is gradually taking steps to position the insurance sector on the path towards achieving the federal government ambition. Some of the laudable steps include:
*Industry Consultation
Knowing fully well that NAICOM needs supports from all stakeholders in the insurance value chain, the Commissioner for Insurance and his team, have been consulting and sharing ideas with stakeholders.
The consultation drive has taken the Executive Management team to the Nigerian Insurers Association (NIA); Chartered Insurance Institute of Nigeria (CIIN); Nigerian Council of Registered Insurance Brokers (NCRIB); Association of Registered Insurance Agents of Nigeria (ARIAN) and Institute of Loss Adjusters of Nigeria (ILAN), where prospects and challenges around the industry were exhaustively examined and solutions identified.
Consultations have also been extended to relevant parties outside the insurance industry. The Commissioner and his team had recently visited the Inspector General of Police Kayode Egbetokun, to covet Police support in the implementation of compulsory insurances.
These efforts are expected to properly align the industry with the vision of building a virile and robust economy.
*Technology Deployment
As much can’t be achieved without the use of robust and efficient technology, Omosehin since assumption of office, as Commissioner for Insurance, has continued to work on the information technology infrastructure framework set by the Commission. Prominent among the IT infrastructure is the NAICOM Portal, designed to transform and enhance regulatory responsibilities.
*Expectations From Operators
Insurance operators as foot soldiers are the implementers of the policies and regulations issued by NAICOM and they are expected to ensure the following in the pursuit of the $1 trillion target.
*Good Product Development
Developments and deployments of need-based and problem-solving products by insurance practitioners is highly required in making this vision a reality. Products designed to help carter for risks in the economy would help de-risk the economy, making it productive and prosperous.
*Prompt Claims Payment
People’s and businesses abilities to remain afoot in spite risks, is a function of insurance companies executed through prompt settlements of claims. This is one of the unique means insurance practitioners should support the government ambition. They should ensure policyholders are reinstated promptly to the state they were before they suffer any lost.
*Insurance Education
To effectively manage risk in the economy, educating the public on the importance of insurance and how it can mitigate risk is essential for wider adoption and economic resilience.
Insurance practitioners, must come out from their comfort zones to educate people on the usefulness of insurance to their lives and businesses. The more people embrace insurance, the better the economy, for it would be difficult to attain $1 trillion economy, when the people easily fall into poverty due to their inability to rebound from risks, which would have been mitigated through insurance.
*Top Notch Service Offerings
To offer top notch services, insurance practitioners must hinge their operations on a strong technology platform. According to the Commissioner for Insurance, the deployment of technology is crucial to’ insurance practitioners offering robust high quality services to their clients.
He said the world is experiencing a significant transformation, driven by technological advancements and data revolution at the just concluded 2024 Nigerian Actuarial Society Annual Conference, hence, the insurance sector, in particular, is at the point of a significant shift, with artificial intelligence poised to revolutionise the way people conduct business.
He submitted that as the Nigerian insurance industry continues to evolve, AI presents a unique opportunity to further utilise the power of technology to shape the future of insurance in Nigeria.
“It is therefore exciting to witness conversations around AI especially since the release of Chat-GPT in 2022 which was followed by other AI Chatbots and other technologies to integrate these advancements to improve operational efficiency. It is in recognition of these developments that the Federal Government of Nigeria plans to position Nigeria as the AI hub for AI solutions in Africa.
“This is to be achieved through the development and implementation of a National Artificial Intelligence Strategy aimed at accelerating AI adoption in Nigeria.
“It is thus important that the insurance industry be at the forefront of its adoption. In conformity with the above, the Commission is committed to the Federal Government strategy.
“We will ensure that our sectoral regulatory policies are consistent with the outlined goals of the Federal Government while enhancing the stability of the Nigerian Insurance Industry,” he posited.
President Chartered Insurance Institute of Nigeria Edwin Igbiti said in an era marked by rapid technological advancements, evolving customer expectations, and complex global challenges, insurance industry has a pivotal role to play in helping people and businesses remain afloat.
The place of insurance in government’s quest for a $1 trillion economy is very important, hence the synergy between the Federal Government, NAICOM and insurance practitioners is crucial for realizing this ambitious economic goal.
