Sammy Olaniyi applauds NAICOM’s market development initiatives

Executive Director in charge of operations at Regency Alliance Insurance Plc Dr Sammy Olaniyi has commended the efforts of the National Insurance Commission (NAICOM) at developing the nation’s insurance market saying that the commission’s market development initiatives are beginning to yield the desired dividends.

Dr Olaniyi who spoke in an exclusive interview with Daily Champion in Lagos said that there are now enough indications to show that the Nigerian insurance industry is comparing favourably with related financial institutions like the money and capital markets where the banking industry had hitherto occupied dominant position.

According to him, NAICOM has initiated numerous engagements, policies and frameworks which have precipitated in more conducive environment for the insurance managers to prey upon in their desires to deepen the market penetration.

Dr Olaniyi was emphatic when he declared that NAICOM under the leadership of Sunday Thomas as commissioner for insurance has been very receptive and complementary in the desire of insurance institutions in the country to push further market penetration.

“There is no gain in saying that NAICOM’s market development initiatives and strategies are working. Mr Thomas has undertaken so many bridge building and constructive engagements part of which is his consistent interaction with governments both at the federal and state levels. He has visited so many state governors during which he campaigned on the need to insure government assets. The issue of compulsory insurance is there. This will soon be more manifest especially in Lagos State. There is evidence of growth in industry’s gross earnings. His visits and engagements are actually breaking grounds for the operators in the insurance space”, he observed.

Dr Olaniyi recalled a recent interaction with an ex-banking executive who confided in him that he is now into insurance business.

“This is an indication that the insurance space is now more receptive and is growing”, he reiterated.

Dr Olaniyi was appreciative of the efforts of the insurance commission in removing most of the bottlenecks which hinder the activities of insurance companies by way of regulations, supervisions and rendition of sundry accounts. He rejoiced over the adoption of approaches which now enable the commission to approve returns submitted by insurance companies on record time.

The Executive Director of Regency Insurance Plc consequently challenged his colleagues in the industry to take advantage of the current disposition of the supervisory body by engaging in ethical practices devoid of infractions on established norms.

He observed the deliberate efforts of companies to grow retail businesses which include micro-insurance. Products he said are now been designed by companies to attract the low income earners who he said, needs the mechanism of insurance the most.

Asked to comment on the possible outlook of the insurance market in 2023 against the backdrop of the general election Dr Olaniyi said that insurance is likely to follow the pattern of other financial sectors in terms of business openings considering that investors are known to be more cautious in their decision making during every election circle.

“Insurance business follows the money. We have long observed that investors use to be cautious during such periods and 2023 will not be an exception as many of them will want to wait to see where the pendulum will  swing before taking certain investment decisions. This normally impacts on business. But again, that is the period to protect valuable assets and interests hence the need for securing insurance policy”, he added.

Dr Olaniyi commended the efforts of insurance brokers in the mobilization of businesses saying that most of them are now very objective in the application of rates in their efforts at  protecting both their clients and the insurance companies and by extension, the larger insurance industry.

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