Commissioner tasks insurance firms on product innovation

Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM) Mr Olorundare Sunday Thomas has challenged insurance companies in Nigeria to strive towards bridging identified supply gaps in products and pricing. This commissioner said that this can be achieved through the injection of new products designed to meet specific needs.

Mr Thomas threw the challenge against the backdrop of efforts by the commission to help deepen insurance market penetration in Nigeria.

The commissioner for Insurance who spoke at a recent retreat organisied by the commission for financial journalists in the country expressed happiness that the various market development initiatives undertaken by NAICOM are beginning to yield the desired results.

“The commission is trying to open up the market across the geopolitical zones by reaching out to the states where insurance penetration is perceived to be very low. We expect the industry to respond to these efforts by bridging the supply gap and ensure they followed up on the commissions moves to create awareness among high ranking policy makers in order to prove that the industry is ready for the booming opportunities awaiting them across the country”, he said.

The commissioner listed some of the market development initiatives embarked upon by NAICOM to lift the Nigerian insurance market to global stage  to include the introduction of Risk Base Supervision framework, encouragement of investment in digital capabilities and automation, enforcement of the compulsory insurance products in Nigeria via partnership with relevant agencies, sensitization of various stakeholders, introduction of regulatory reforms and policies including issuance of web aggregators guidelines.

“We can gladly say that the Nigerian Insurance market has undergone substantial structural and regulatory reforms over the years following the market development initiatives being implemented and the evolution of Nigeria’s financial sector in the last decade which has been characterized by digital transformation.

“The Commission is trying to open up the market across the geo-political zones by reaching out to the states where insurance penetration is perceived to be very low. We expect the industry to respond to these efforts by bridging the supply gap and ensure they follow up on the Commission’s move to create awareness among high ranking policy makers in order to prove that the industry is ready for the booming opportunities awaiting them across the country. As I said earlier, the project with the Kano State Government is a litmus test for us as an industry”, the commissioner further explained.

Digging deeper into some of the strategies which NAICOM is deploying to enhance market penetration, Mr Thomas revealed that “the Commission will soon be unveiling the Commission’s sandbox to give room for innovative expansion of insurance reach out. The web aggregators’ guideline is also aimed at opening access to insurance and also a means of creating a convenient market for insurance. Presentations are going to be made by subject matter experts on these issues and I believe more light will be thrown and you have the opportunity to ask questions so that you leave here more informed about the Commission’s objectives and priorities.

“As you can see so far, the Commission is focusing on using technology to boost access to insurance as that seems the way to go under the prevailing circumstance. We are exploring ways to take insurance to where the other financial sectors are or even surpass that mark. Financial transactions are more of a one-stop shop for everything and is either we key in or we lose the business to more innovative outlets that will seize it from us”

The commissioner challenged insurance companies to pay more attention to prompt settlement of genuine claims saying that it is the resolution of the regulatory body to now rate insurance firms based on the capacity to pay claims..

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