Insurers mull convergence with technology @ IMT 3.0 as NAICOM tasks operators on fundamentals

Insurance Meets Tech 2024 which is the third edition of a revolutionary summit providing the platform for the convergence of insurance and technology with the purpose of deepening insurance penetration in Nigeria may have proofed to be the  most successful considering the far reaching agreements reached at the event. The core of the agreement is the urgent need for insurance practitioners to urgently build on the back of technology to wake up army of clients who are waiting to be brought into the insurance net. There was a near consensus that technology is the way to go in attracting better patronage in view of the insatiable appetite of Nigerians to inculcate technology in their everyday life with insurance not been an exception. It was revealed how the banking sector has leveraged technology in expanding their customer base, a pathway which is beckoning on the insurance sector.

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin  who led discussions at the event had tasked insurance operators in Nigeria to address fundamental issues plaguing the sector, to revitalize the industry to risk-manage the country’s one trillion dollar economic aspiration of the present administration.

Omosehin who spoke on “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration” delivered at the event

Omosehin listed the fundamental issues the industry must address to include low insurance penetration; lack of public trust; market fragmentation; regulatory reforms and digital transformation and adaptation.

Represented at the occasion by NAICOM’s Head of Lagos Control Office, Dr. Julius Odidi, he said for the industry to achieve the objective of revitalising the insurance industry to risk-manage Nigeria’s one-trillion-dollar economic aspiration of the present administration, the industry operators must of necessity address the above-stated fundamental issues.

The NAICOM boss also emphasized the need for financial soundness and stability of insurance institutions, noting that a strong financial base is key to the success of the industry.

While commending the organizers for choosing the theme, he said “Essentially, revitalizing the Nigerian insurance industry to risk-manage Nigeria’s One Trillion Dollar Economy speaks to the insurance industry’s readiness and preparedness to de-risk the activities that is projected to galvanize productivity, Innovations, economic growth and development.

With the rapid changes in technology and economic/business environment, this discuss is not just timely but also topical to reawaken the need for our dear industry to rise up to the current realities of what is expected of us as an industry.”

For the industry to remain relevant in the unfolding economic situation in Nigeria, according to Omosehin, operators must also be able to address current realities of economic instability, climate change, rapid technological advancement, changing behaviour of consumers, soaring inflation and forex instability on global financial markets disrupting ways financial services are carried out.

The way to do this, he said, is for the industry operators to imbibe technology in to have a one-stop shop for insurance products and services, noting Innovation and sustainability as some of the major emerging issues today.

“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 meet the demands of our market as innovation has taken the driving force in the financial services sector.

“More critical to the theme is the issue of financial soundness and stability of insurance institutions, as a strong financial base is key to our success as an industry. Having sufficient capital that is commensurate to the Risk of an insurer has become inevitable if the industry is to meet up with up with the consequential effect of a growing economy, managing a one trillion economy and compete with our counterparts across the globe in management of risks.

“As I recently mentioned in my address to professionals in the industry, to achieve the aforementioned the insurance industry must develop a wide range of new skill sets and orientation, attract and retain talents, diversify our product spectrum, improve our adaptability and agility, improve on transparency and openness, and importantly, invest in technology. These and many more factors must be considered if we must de-risk the economy.

Highlighting what the Commission has done since his assumption of duties as CEO to prepare the industry for it’s task ahead, Mr Omosehin said, “First, upon the assumption of office of the current Management, we 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 5 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.

“In furtherance of the need to address the fundamental question of how to attain our intended goals, we are resolved to place high priority to settlement of genuine claims as that is the fundamental reason of our existence as an industry.

“One of the enshrined and fundamental responsibilities of the Commission as a regulator is the protection of policyholders, hence the Commission prioritized prompt settlement of all genuine claims, fair treatment of policyholders and utmost transparency as some of the ways to boost insurance industry’s image and support economic growth.”

Speaking on the IMT 3.0, the Chief Executive Officer of Modion Communications, the conference organiser, Mr. Modion Aleobua, said “IMt 3.0 is one of West Africa’s premier insurance events focused on the intersection of insurance and technology.

“The conferences designed to foster collaboration, innovation, and growth within the insurance industry by bringing together stakeholders, including thought leaders, regulators, insurtech innovators, investors and technology experts.”

“This year’s edition featured IMT Redefined – a youth-centric, lifestyle segment where Celebrities, Millenials, and Gen Z were given an audience to interact with the theme “Celebrating Lifestyle, Creativity and Afrobeats.”

According to Mr. Aleobua, “IMT Redefined seeks to inspire the next generation to view insurance as an essential tool for lifestyle.

“It is a fresh and dynamic segment of the Insurance Meets Tech (IMT) platform, designed to engage younger audiences, particularly Millenials and Gen Z. Unlike the traditional C-Suites series, IMT Redefined focuses on celebrating lifestyle, creativity, and Afrobeats. It aims to inspire this demographic to see insurance as an essential protection tool rather than just a financial product.”

The conference featured high-level discussions from insurtech and insurance experts; the innovative showcase of products and services; provides networking opportunities; allows for youth engagement and global participation.