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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has said it is working with other regulators in Nigeria to develop more Shariah-compliant investment opportunities for takaful and other non-interest financial institutions in Nigeria.
The Commissioner for Insurance Olusegun Omosehin, said this at the 2nd edition of the African Takaful and Non-interest Finance Conference held yesterday in Lagos, adding that NAICOM has been instrumental in promoting the growth of the takaful industry in Nigeria through several initiatives.
Omosehin, who was represented at the event by the Deputy Commissioner Technical NAICOM Dr. Usman Jankara, noted that since issuing the takaful operational guidelines in 2013, the Commission has licensed five takaful operators, with the concept gradually gaining acceptance.
He submitted that although takaful currently represents 1-2 per cent of the insurance market, the future outlook is promising, considering the average annual growth rate of over 34 per cent in contribution generation recorded by the industry in the last four years.
He maintained that the Commission has undertaken several initiatives to support the takaful industry, stating that the initiatives include; the application of risk-based capital system which affords takaful operators
a more relaxed minimum capital requirements; the proportionate qualification requirements, which facilitate new entrants into the takaful market in Nigeria and most importantly, the market conduct and enterprise risk management guidelines for takaful and retakaful operators which were issued to ensure best practices and effective risk management.
“Furthermore, several stakeholder engagement and sensitization workshops have been conducted to raise awareness and educate the public about takaful and its benefits.
“We have and continue to collaborate with international standard setting organisations like the Islamic Financial Services Board, and Accounting & Auditing Organization for Islamic Financial Institutions to provide requisite regulatory guidelines, technical training and support for the industry, among other initiatives.
“Additionally, the Commission is working with other regulators in Nigeria to develop more Shariah-compliant investment opportunities for Takaful and other non-interest financial institutions in the economy,” he posited.
The Commissioner for Insurance noted that as we face global challenges such as pandemics, environmental hazards and geopolitical uncertainties, the resilience offered by Islamic finance and takaful becomes increasingly vital.
According to him, the recent pandemic has highlighted the fragility of our existing systems and has shown that sole reliance on conventional models may not suffice in times of crisis, noting that the Islamic financial sector has the potential to innovate, adapt and create products that cater to emerging needs.
He remarked that as we look to the future, we should leverage the principles of islamic finance and takaful to build a more resilient world, stressing that together, we can create a financial system that not only withstands volatility but also promotes prosperity for all.
He canvassed support for policies that will foster partnerships that drive innovation and educate communities on the benefits and.growth of takaful and Islamic finance.
