NAICOM To Collaborate With Govt Agencies, To Lift Insurance Business
The National Insurance Commission(NAICOM) has reiterated its commitment to collaborate with stakeholders including government agencies to boost the growth of the Insurance industry.
Sunday Thomas, the Commissioner for Insurance stated at the retreat for members of the Nigerian Council of Registered Insurance Brokers (NCRIB) Thursday in Lagos.
Speaking on the theme, “Business Strategy for Sustainability – Personal Mastery and Self Leadership”, Thomas reinstated NAICOM’s commitment to ensuring that the Insurance sector leverage strategies to promote its business.
According to him, NAICOM is committed to the continuous development and growth of the Nigerian insurance industry, adding that the commission is ready to engage other stakeholders in entrenching good business strategies.
“The National Insurance Commission is committed to continuous development and growth of the Nigerian insurance sector thus, always prepared to collaborate with all stakeholders in promoting and entrenching good business strategies for growth,” he said.
On strategies to be adopted by NAICOM to promote businesses, Thomas outlined “reaching out to the states, to agencies of government, enhancing our technology, infrastructure, bringing the Nigerian insurance industry into the mainstream of continental and on our way to global relevance.”
He said the retreat which comes up annually, couldn’t have come at a better time, due to the challenges facing the sector, economy, nation and the globe, adding that the event always provides a platform to interact and meaningfully engage each other on issues of concern in the insurance sector and the brokerage arm specifically.
“As captains of an arm of the Insurance sector, it should be well understood and comprehended that you must continuously live and work purposefully towards a vision, in alignment with your values and in a state of constant learning about yourself and the reality in which you exist. I believe that Personal Mastery and Self-leadership both require self-awareness, self-management and self-learning.
“How can we be true to ourselves if we don’t know who we are, what our values are, and what our vision is?” he queried.
“Let me point out the fact that in agreement with your theme for this retreat, it is apparent that no business entity will be able to survive unless it takes into consideration the following – the community in which it operates, delivering consistent value to customers, maintaining the highest standards of governance and ethics, and mitigates its overall impact on the environment.
“Consequently, as CEOs of the insurance broking profession, you should continually explore ways with other stakeholders to facilitate economic prosperity; ensure environmental sustainability and social development to drive long term sustainable growth in the Nigerian insurance industry for the overall lasting benefits to the society, pertinent to our national and institutional growth.”
He emphasized that the insurance industry as a business is not outside of the same pressures as businesses in other industries/sectors. However, the impact of unsustainable trends can create significant pressures on the industry’s profitability in the short and long run.
He listed inadequate brokerage services to policyholders, poor claims handling service, price-based competition among players,
Technology adverse (need to explore inclusiveness via insurance), lack of innovative products that meet customer’s needs and concentration of operations in few locations as challenges confronting the sector.
Others are; focused on big-ticket businesses like Oil and Gas, Aviation, poor risk governance and poor distribution channels and skill.
“As CEOs, you need to be mindful of the need to entrench a sound “Business Strategy for Sustainability” as many insurance business claims, but without a realistic and effective sustainable business strategy. Suffice it to say that such businesses are unlikely to deliver the gains that more sustainable performance could bring through the determination of their activities, behaviour, products, services and a detailed understanding of the environmental and social context in which they operate.
He listed changing the narrative and embracing:Transparency,
engagement of all stakeholders,
better Innovative Products,
new sources of Revenue, improved Claims service, use of technology for inclusive insurance, diversification of business base and improved Governance as the way forward for the Nigerian insurance industry.
“You will agree with me that the imperative for a sound personal mastery and self-leadership cannot be over-emphasized as companies globally are under pressure from multiple stakeholders to adopt sustainable business practices in which the insurance broking arm is not an exception.
“It is imperative to reiterate that the road to implementing and improving a business strategy for sustainability will differ for various business entities, but with ingenuity, perseverance and cooperation, they can achieve the desired result. As an arm of the insurance sector, your collective resolve to ensure business sustainability and collective growth and development with other arms of the industry will determine how far we can all go in achieving industry-wide stability,” he added.