We’ve Strengthened Our Internal Capacity To Regulate Effectively – NAICOM Boss

L-R: Deputy Commissioner, Technical, Dr. Usman Jankara; Commissioner for Insurance Olusegun Omosehin, and Deputy Commissioner, Finance/Admin Ekerete Ola Gam-Ikon at the event.

The Commissioner for Insurance/Chief Executive Officer, National Insurance Commissioner (NAICOM), Mr. Olusegun Omosehin, said one of the things the Commission has done since he assumed office three months ago, is to strengthen its internal capacity to regulate the nation’s insurance industry effectively in such a way it will no longer be challenged by anybody or institution.

Mr. Omosehin who said this yesterday during NAICOM management’s interactive session with the insurance journalist in Lagos, said in the last three the Commission has done a lot in line with the actualization of its mandate, which is to regulate, supervise and develop the insurance sector.

“In the past three months, we have been deeply engaged in a comprehensive effort to chart a new course for NAICOM. This has involved extensive consultations with key stakeholders in the industry, including the Nigerian Insurers Association (NIA), the Institute of Loss Adjusters of Nigeria (ILAN);  the Nigerian Council of Registered Insurance Brokers (NCRIB), Association of Registered Insurance Agents of Nigeria (ARIAN); Chartered Insurance Institute of Nigeria (CIIN); Professional Insurance Ladies Association (PILA); Association of Professional and Practicing Insurance Brokers of Nigeria (APPIBON) Consumer advocacy groups and lawmakers responsible for insurance industry’s oversight functions in Nigeria.

“These engagements have culminated in the development of a strategic blueprint for the future of the insurance sector in Nigeria. At the heart of this plan are five key priorities that will guide NAICOM’s efforts to regulate, supervise, and develop the industry.

He highlighted the Commission’s five areas of priority which include building public confidence and safeguarding policyholders’ interest; strengthening NAICOM’s internal capacity; ensuring financial soundness of insurance companies; encouraging innovation and improving accessibility and penetration in the industry.

“The priority is to rebuild public confidence in the insurance sector.  It has to do with love and our desire to prioritize our consumer issues, so we consider safeguarding the policyholders’ interest as paramount. By so doing we believe this will help the industry to rebuild public confidence

“You and I know that one of the key issues we had as an industry is the declining confidence of the public in the sector. That has not been unconnected to some of our entities that have not been able to meet their obligations. We have some ailing entities we have to manage in order not to disappoint the public.  Our desire moving forward is to reduce the incidence of not having too many companies falling into that category. The reality on the ground is that we have a few we are managing and we are hopeful to get out of this.

“The second priority is to strengthen NAICOM’s internal capacity to regulate the industry effectively. This includes enhancing the legal and regulatory framework to ensure that the Commission can take decisive action without being challenged by any individual or institution.

“The third priority is ensuring the financial soundness of insurance companies. Operators need to meet their operational requirements, one of which is meeting the minimum capital requirements to enhance the sector’s stability.

The fourth priority is innovation -with NAICOM creating a new directorate focused on fostering innovative ideas within the industry, to enable us to invite new ideas that can transform the industry because we believe that innovation is key to driving growth and development in the insurance sector

The fifth priority is improving accessibility and penetration of insurance in the Nigerian market. This includes enforcing compulsory insurance policies and ensuring that insurance benefits reach a broader spectrum of society.

He said strengthening the Commission’s internal capacity will give it the needed power to effectively regulate the industry like what is happening in the banking sector where the Central Bank of Nigeria (CBN) has been given enough powers to function effectively. “That is the kind of power we want for NAICOM,” he said.