The Commissioner of Insurance, Sunday Thomas has hinted that the industry will continue its transformation of the regulatory environment to sustain its growth over the next decade from 2024 to 2033.
The industry’s total assets grew from
N827.5 Billion in 2014 to N2.33 Trillion in 2022 representing an average of 12 percent and Thomas said the transformation journey will continue along the following Seven (7) strategic thrusts to sustain the growth.
The seven strategic thrusts according to the Insurance Commissioner are to transition to a risk-based capital model, promote insurance awareness and adoption, broaden insurance product offerings and improve the effectiveness of distribution channels, enhance digitalization of the insurance industry and deepen the industry’s talent pool and capabilities
According to him the Conference with the theme “Redefining Safety – Insurance Solutions for Public Buildings and Buildings under Construction” is only one out of numerous efforts of the Commission to create the needed awareness of the general public of compulsory insurance.
He said “It has also created the platform to strengthen collaboration with relevant government and non-government agencies and other stakeholders. This is being done to ensure that enforcement of all classes of compulsory insurances across the country are carried effectively.”
The Commissioner said ” The Commission under my leadership has remained resilient and focused on implementing initiatives that will foster the development of the Nigerian insurance industry and align its fortune with that of the nation as Africa’s largest economy.
“In terms of its performance, the industry premium income between 2014 and 2022 grew at an average of 13.6 percent from a premium income of
N282 Billion to N726.2 Billion.
Speaking on some of the flagship projects being implemented by the Commission as part of its medium-term NAICOM Strategic Plan 2021–2023 he said ” Ensuring improved safety and soundness of the Nigerian insurance sector to continue to de-risk economic activities of Nigerians through the enhancement of our prudential regulatory tools and good corporate governance practices.
Another is the migration of the Commission’s supervisory regime to align with global best practices, an initiative that has enhanced the Commission’s distress management and market restructuring among others.
Others are the implementation of Project E-Regulation through an operationalized Business Process Management Solution and NAICOM Portal. The BPMS is currently being used to process applications from insurance institutions while the Portal remains the focal point for the generation of unique policy identification numbers for all policies as well as the repository for statistical data including verification of insurance policies issued in Nigeria.
“Implementation of an actuarial capacity development programme for the Nigerian insurance industry. The programme has helped to develop some Certified Actuarial Analysts in Nigeria. The Commission will continue to engage relevant stakeholders with a view to developing additional Actuarial professionals for the industry.
The commission has also opened up the insurance supply side through the licensing of twelve (12) additional new entrants and expansion of insurance distribution channels, etc. The licensing of these companies has enhanced the availability of insurance products as well as increased local insurance capacity in Nigeria. This was historic considering that the last time an insurance company was licensed by the Commission before those recently licenced, was 10 years ago while that of any Reinsurance company was 32 years ago.
He noted that “The Commission as part of its support to government initiatives mobilized the insurance industry to contribute the sum of N500million and free Life Insurance cover for front-line workers in the management of the COVID-19 Pandemic.
He stressed that the Commission has continued to reach out to State governments and relevant security agencies in the enforcement of compulsory insurance.