Why Insurance Sector Must Embrace Innovation – NAICOM Boss
The Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, has highlighted the reasons Insurance Sector must embrace innovation and sustainability.
He said the sector must embrace innovation and sustainability to meet the rapid market changes, changes in consumers’ preferences, tastes and lifestyles, which are some of the major emerging issues today.
Omosehin said this in his Keynote Address delivered the Deputy Commission for Insurance in charge of Finance and Administration, Mr. Ekerette Ola Gam-Ikon, who represented him at the Chartered Institute of Nigeria’s year 2024 Professionals Forum held in Abeokuta, Ogun State recently, themed “The Insurance Industry: Transformation Strategies towards Expanding Market Reach.”
While urging the insurance operators to develop products that meet the demands of the market, he said innovation has taken the driving force in the financial services sector.
He hinted that the Commission had after issuance of the regulatory sandbox, which is intended to accommodate innovations, created a dedicated Innovation-Hub Unit targeted at addressing gaps in innovation regulation and market expansion.
On the manpower development, he said, “In order to meet the target of market expansion and growth, the insurance industry must develop a wide range of new skill sets and orientation, attract and retain talents, diversify our products spectrum, improve our adaptability and agility, improve on transparency and openness, invest in technology, improve trust and confidence in insurance, have institutions that compete favourably with other sectors in terms of liquidity, capitalisation and expertise. “
He said these and many more factors are to be considered if we must see the insurance industry of our dreams.
“While we are enthusiastic about opening up the insurance market in the country and deepening penetration, I want to urge us to look inward and re-appraise our professional and business ethics and conduct.
“As professionals, we must conduct our business with utmost integrity and in manners that does not bring disrepute to the insurance profession,” Omosehin said.
He maintained that the Commission is prioritising issue of accessibility to insurance products across the country to ensure increased penetration, adding that “the conduct of insurance practitioners in building and maintaining the trust of consumers is our primary responsibility and that will galvanize growth and deepen penetration in the country.”
“Every other strategy we discussed above depends solely on a strong corporate governance culture in our entities. The Commission will always emphasize the importance of strong Corporate Governance practices in the survival of business entities.
“The quality of the strategies and decisions made on behalf of those entities would determine how far they can go and how strategically positioned they will be in the sector’s contribution to national output.
“Ladies and gentlemen, the cooperation and support of all stakeholders is equally an integral factor to the success of the transformation strategies to be adopted for the growth and development of the industry.
“The Commission is hereby enjoining all players, professionals, associations to come to the table, bringing our expertise, maximising our differences and building yet again a stronger and better insurance industry. The ability to stand united, focused and resilient will determine how far we can go,” Omosehin said.
