NAICOM Tasks Board Of Insurance Institutions On Strict Adherence To GRC Principles
NAICOM CEO, Mr. Olusegun Ayo Omosehin, Speaking at 2024 Insurance Directors’ Conference
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, has identified poor risk management and a very low compliance culture to Governance, Risk, and Compliance principles as key challenges that the insurance industry in Nigeria is currently grappling with.
Speaking at the 2024 Insurance Directors’ Conference at Raddison Blu Hotel, Ikeja, with the theme, “Board Performance in the Nigerian Insurance Industry: A GRC Approach,” Mr Omosehin emphasized the need for Board of insurance Companies as the highest policy making organ, to demonstrate genuine commitment and strict adherence to Governance, Risk, and Compliance principles.
“To overcome these challenges,” according to him, “the Board as the highest policy making organ for the various institutions must demonstrate genuine commitment and strict adherence to Governance, Risk, and Compliance principles. If carefully implemented this will improve decision-making, increase transparency and accountability, and ultimately improve regulatory compliance.
“However, as a regulator, we believe that one of the key challenges that the insurance industry is currently grappling with is the issue of subpar corporate governance practices, poor risk management and a very low compliance culture.
“In today’s global business landscape, integrating GRC at the Board level is vital for business success and sustainability. It is no longer optional, but an essential ingredient for enhancing decision-making, transparency, accountability and risk management.
“Effective GRC ensures that Boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance, NAICOM boss noted.
On what the Commission is doing to support the achievement of President Bola Tinubu’s USD$1 trillion economy by 2030, Mr Omosehin said, “NAICOM is committed to aligning the insurance sector with the President’s goal of growing the Nigerian economy to USD$1 trillion by 2030, and to achieve this, the commission is committed to creating the necessary regulatory framework required to achieve meaningful contribution from the insurance sector.
“De-risking a trillion-dollar economy takes more than mere rhetorics.
“To this end, we are fully committed to working with the National Assembly in delivering the required legal and regulatory framework which would flow from the successful passage of the 2024 Insurance Reform Bill.”
The CFI stated that as part of the Commission’s strategic plan, it has set five key priorities that will deliver on this agenda, namely: Safeguard policyholders and improve confidence in the insurance industry; Strengthen our supervisory capabilities; Improve safety and soundness of our institutions; Foster Innovation and sustainability of the insurance industry and Enhance overall insurance accessibility and penetration in Nigeria.
“Unifying our efforts to embed these critical pillars across all stakeholders’ strategies will ultimately redefine the industry’s landscape and chart a clear path to success,” he added.
