NAICOM harps on digitalisation as Way forward for insurance industry
Officials of NAICOM and NAIPCO members in a group photograph at NAICOM seminar for journalists in Kano on Monday January 6, 2020.
The Acting Commissioner for insurance, National Insurance Commission (NACOM), Olorundare Sunday Thomas ,has emphasized the importance of digitalisation of operations in insurance industry, saying it is the way forward for the industry.
Thomas said this today in his keynote address at the seminar for insurance journalists organised by NAICOM in Kano with the theme: “Strategic Focus of the commission in the year 2020; from compliance to development.”
According to him, “Digitalisation of insurance business is no longer an option, but an imperative which we all have to work towards its actualisation. As we may all be aware, the industry is currently lagging behind other financial services sectors in this area.”
He stated also that the Commission is working vigorously to see that all its operations are digitalised.
Thomas hinted that year 2020 is a year for the industry to turnaround the fortunes of the industry and this cannot be accomplished without digitalising the processes and encouraging the industry to imbibe same.
He said the Commission shall, in the course of the year, continue to introduce new reforms and initiatives in line with international best practices for attaining the level of growth and development all desire for the sector.
On recapitalization, he assured that the Commission will pursue the recapitalization to its logical conclusion in December 2020.
Thomas said the financial inclusion strategy has been central to the Federal Government developmental plan, adding that the Commission has over the years invested hugely in the development of financial inclusion mechanisms which includes the introduction of Microinsurance and Takaful Insurance products.
The introduction of these lines of insurance, he said, is intended to deepen the penetration of insurance in the country and bring into the fold majority of the populace that are hitherto excluded. So far, some milestones have been recorded in this regard with three standalone Microinsurance and four Takaful insurance companies already granted approvals.
He said the Commission shall continue to deploy more energy and resources in building public trust and confidence in insurance despite years of poor perception, and called for the support of insurance journalists in this regard.
The theme paper presenter, Deputy Director/Head Research, Statistics and Strategy Directorate,Mr. Gbolahan Adewale Suleiman, listed the achievements of the Commission in 2019 and its focus in 2020.
He said the recapitalization exercise which started in 2019 will continue to remain the core focus of the Commission in 2020.
Some achievements of the Commission in 2019, included the issuance of circular to all insurance and reinsurance companies on the new capital regime.
Ensured financial inclusion initiatives which led to approval in principal given to two new micro insurance companies and two Takafu insurance companies: championing the West African Regional Integration that will promote cross-border transactions.
Others are the finalization of the code of corporate governance (adoption of National Codes); capacity building and awareness creation for implementation of International Financial Reporting Standard 17 (IFRS 17) ahead of its commencement in 2022’ among others.
In 2020, he said, the Commission will continue on the industry recapitalization aimed at increasing industry’s capacity that will enhance local retention and improve industry’s premium and ability to pay claims as well as protect shareholders investment, among others.
