NAICOM Tasks Operators To Change Narrative About Insurance Industry

By Sola Alabadan

The Commissioner for Insurance, Mr. Olorundare Thomas, said the way forward for the Nigerian insurance industry is a move towards 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.
He gave this charge at this year’s retreat organised by the Nigerian Council of Registered Insurance Brokers (NCRIB) for Chief Executive Officers of the insurance broking firms in Lagos on Thursday.
The NAICOM boss warned that “the impact of unsustainable trends can create significant pressures on the industry’s profitability in the short and long run. They include: inadequate brokerage services to policyholders, poor claims handling service, price based competition among players, lack of innovative products that meet customer’s needs, concentration of operations in few locations, focus on big ticket businesses, as well as poor distribution channels and skills.”
He said the theme for the retreat “Business Strategy for Sustainability – Personal Mastery and Self Leadership” couldn’t have come at a better time than now that we have to look beyond all the challenges we are facing as a sector, economy, nation and the globe.
As CEOs of insurance broking firms, he enjoined the brokers to 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 also emphasised that the insurance industry as a business is not outside of the same pressures as businesses in other industry or sectors.
“As CEOs, you need to be mindful of the need to entrench a sound “Business Strategy for Sustainability” as many insurance businesse 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 noted.
He added: “You will agree with me that the imperative for a sound personal mastery and self-leadership cannot be over-emphasised as companies globally are under pressure from multiple stakeholders to adopt sustainable business practices in which the insurance broking arm is not an exception.”
He maintained that “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 reiterated NAICOM’s commitment 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 sustainability of the Nigerian Insurance Industry.
Thomas listed some of the initiatives of the Commission to include: reaching out to the state governments, reaching out to Agencies of government, enhancing its technology infrastructure, as well as binging the Nigerian insurance industry into the mainstream of continental and global relevance.