By Sola Alabadan
The Commissioner for Insurance and Chief Executive of National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, has counseled insurance operators in Nigeria incorporate innovative Insurtech solutions that will change their conventional business models, thereby safeguarding their continued relevance in addressing customer needs and market position.
Speaking at the Insurance Meets Tech (IMT) 2024 conference in Lagos, Omosehin informed that the commission has also completed a draft Insurtech Operation Guidelines which shall be released soon.
He said “The current realities of economic instability, climate change, rapid technological advancement, changing behaviour of consumers, soaring inflation and forex instability on
global financial markets have disrupted ways financial services are carried out. Hence, we must imbibe technology in order for us to have a one-stop shop for insurance products and services.
“The insurance sector must embrace innovation to meet up with the rapid market changes, changes in consumers’ preferences, tastes and lifestyle. We must develop products that meets the demands of our market as innovation have taken the driving force in the financial services sector”.
While reiterating that the commission plays a vital role in fostering innovative business solutions that address pressing economic and social issues in Nigeria’s insurance sector, he pointed out that this commitment extends to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry.
In achieving this objective of revitalising the insurance industry, he stated that the industry must of necessity address the fundamental issues plaguing the sector, such as: low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, as well as digital transformation and adaptation.
In spite of the fact that the lockdowns negatively impacted traditional distribution channels in the insurance industry, he said it also encouraged insurers to develop digital offerings. He added that “This has come to show that investing in technology, online platforms, and mobile apps can improve customer experience and accessibility.”
The NAICOM boss affirmed that the nation’s insurance industry is not where it should be, noting that the Commission has recognised the urgent need to strategically reposition the insurance industry and place high priority in certain areas that will potentially stimulate the transformation agenda of the insurance sector.
“As a Commission, we have set out five priority areas for immediate implementation, which include: safeguarding policyholders and improving confidence in the industry, strengthening our supervisory capabilities and organizational effectiveness, improving safety and soundness of the Nigerian insurance industry, fostering innovation and sustainability of the Nigerian insurance industry, and enhancing overall insurance accessibility and penetration in Nigeria.
He stressed that “The post COVID-19 era witnessed a paradigm shift in business operations, driven by unprecedented disruptions that necessitated innovative adjustments to ensure continuity and resilience. This has led to the widespread adoption of AI and other emerging technologies, catalysing fierce innovative competition and impacts, product development, service delivery, distribution networks and operations. As a result, organisations are leveraging technology to drive growth, improve efficiency, and stay competitive in an increasingly complex landscape.
It is worthy to state that the increasing momentum of Insurtech development poses both opportunities and challenges for established industry players.”
