NAICOM Restrategizes Against COVID-19 Effects…Unveils 10 Points Growth Plan

The Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NAICOM) Olorundare Sunday Thomas, said the Commission has mapped out strategies to cushion the negative effect of COVID-19 on the insurance industry’s operations.

NAICOM’s boss also unveiled a ten-point growth plan, which he said, if properly implemented, will speed up the growth of the industry.

Presenting a paper entitled “Strategies Aimed at Cushioning the Effects of the Covid-19 on the Operations of the Nigerian Insurance Industry and the way Forward,” at the 2022 Business Outlook organised by the Chartered Insurance Institute of Nigeria (CIIN) today in Lagos, Thomas said “the pandemic opened a lot of doors that ordinarily, the industry would not think was possible.

“The insurance industry has become more visible since the pandemic, earning the commendation of President Mohammadu Buhari for supporting the efforts to contain the Covid-19 but needed to do more in its role in reducing vulnerabilities in all risks.

“The dependence on the digital capacity he stated, has nurtured quickly the need to reinforce cyber protections to tame increased exposure of companies remotely working to cyber risks and also, the need for issuance of ICT standards for the industry.

“Besides, the Commission has a stake in the stability of the industry and has not lost focus of this leading to some policies and programmes wearing relaxed tags. This is seen in the extension of the recapitalisation exercise, transition to the risk-based supervisory regime, postponement of IFRS 17 commencement date, and regulatory forbearance,” NAICOM boss stated.

He noted that the Commission is not oblivious of its responsibility to strengthen regulatory oversight and risk management and also implement effective policyholder protection schemes which involve improved enforcement of market conduct rules and also monitor the degree of customer satisfaction and enhance insurance education.

Thomas noted that the regulatory body has scaled up its project e-Regulation and has moved up more steps of market development with the current collaborative model with international and local stakeholders.

He mentioned ten points which if well implemented can move the sector forward including a risk-based capital approach, adding that Commission and the Nigerian Insurers Association (NIA) are set for joint accomplishment.

Other endorsements include standardisation of reports, enhanced investment in digital capabilities and automation, entrenched effective asset-liability management, and capacity development programmes- actuarial, competency framework and having in place reinforced recovery and resolution plan.

Earlier in his opening remark, the President/Chairman, Governing Council, CIIN, Sir Muftau Oyegunle, examined the imperative of the Institute’s Annual Seminar; the Business Outlook.

He said it is a forum where key players in the Insurance Industry, as well as the Finance sub-sector of the economy, converge to review the business environment in the country for the immediate past year and strategize on the way forward for the insurance industry in the New Year.

He said the Business Outlook will examine amongst other things, the National Budget, reviews the thrusts of the fiscal and monetary policies of the government and estimate how these would influence the insurance industry in particular and the economy in general.

Murtau who gave the theme of 2022 Business Outlook as: “Economic Policies of the Government in 2022: Challenges, Issues and Prospects”, noted that the occasion is aimed at examining the Government’s 2022 economic policies including the 2022 National Budget as presented; review the fiscal and monetary policy of the Government and their impact on the Insurance sub-sector of the economy; appraise the performance of the Insurance Industry in 2021 and project into the future as well as review the effects of the COVID-19 pandemic to the Insurance industry and how the industry can reposition itself – going forward.