Industry Needs Growth-Enabling Regulations From NAICOM, Says Funmi Babington-Ashaye
The Managing Director and Chief Executive Officer of Risk Analyst Insurance Brokers, Funmi Babington-Ashaye said part of what the Nigerian Insurance industry needs from the regulator, National Insurance Commission (NAICOM) is growth-enabling regulation.
Speaking on the topic, “Emerging Markets And Opportunities In The Insurance Industry” at the 2021 Mid-Year Workshop organized by the Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB), Ashaye said growth-enabling regulation helps to deepen increase insurance penetration in emerging markets and create a social safety net pointing to governmental policies that promote insurance take-up.
These growth-enabling regulations, according to her, are designed to protect consumers, maintain financial stability and build trust in insurance companies. “We need more growth-enabling regulations from NAICOM,” she said.
She quoted Sigma report as saying “emerging markets growth is being driven by a group of industry-specific trends, including regulatory evolution; insurtech revolution; growing use of mobile devices and wider financial inclusion.
“The use of technology in insurance can make products more affordable, businesses more profitable and provide access to new risk pools however the adoption of technology is not uniform across emerging markets.
“While China has become a major enabler of insurtech solutions, adoption has been slower elsewhere, citing regulatory barriers that are preventing insurers from using tech solutions to transform their business models.
“Flexible regulation, like the stance taken in China, can give insurers the opportunity to increase their involvement in technology companies. Our Regulator, NAICOM also need to encourage the insurance industry along this line.”
Mobile devices are becoming the most important point of interaction for customers with their insurance providers.
“The expansion of the internet and mobile phones is enabling insurers to distribute, underwrite and pay claims online, which in turn helps expand the reach of insurance and close existing protection gaps.
“Improving access to insurance is particularly valuable for people with low incomes, who often struggle to manage unforeseen financial shocks,” the report said.
The report, according to her, emphasized that they are particularly vulnerable to shocks such as illness, incapacity to work, and the effects of natural catastrophes. It also helps close the protection gap for a large segment of the world’s population.
Addressing the members virtually, the President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Dr (Mrs) Bola Onigbogi, described Brokers as strategic stakeholders in the insurance value chain.
She said Lagos Area Committee as a foremost Area Committee has readily complemented the present leadership team of the Council under her Presidency, noting also that the Council is making great strides in its activities.
“Let me use this platform to inform you that great successes are being recorded in the stride of our council towards its strategic engagements as well as enhancement of the image of our great Council and its members.
“Just this week, the Council paid a courtesy visit to the Vice President of the Federal The Republic of Nigeria, Prof Yemi Osinbajo in Abuja, who was quite delighted to receive our delegation and gave profound advice and insight to how brokers can be more relevant to the scheme of things in Nigeria, Onigbogi said.
Onigbogi who assured the Council of excellence leadership said “I assure you we will not rest in our oars in giving policy and representative leadership.”
Onigbogi called on operators to use the disruptions occasioned by the pandemic to break new grounds and grow their business. “This is the period where the operators need to break the frontiers of new markets post-COVID-19 in order to flourish.”
She commended Lagos Area Committee for organizing the workshop.
The Chairman, Lagos Area Committee, Rotimi Olukorede, in his opening remark enjoined the underwriters and brokers to take advantage of opportunities in and around them to grow their bottom-line instead of being consumed by the zeal to market to potential customers to the detriment of these opportunities.
According to him, “If we don’t know or appreciate the opportunities available in our own industry, we will not be able to harness them fully.”
He called on underwriters and brokers to take advantage of opportunities abound in the area of product development, technology, market share and customer service.
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