The Commissioner for Insurance, National Insurance Commission, (NAICOM), Mr Sunday Thomas, has tasked insurance companies with the development of green products and improving operations geared towards energy efficiency.
He gave the charge while delivering a welcome address at the 2022 Insurance Directors Conference held in Lagos South West Nigeria.
Thomas also tasked them on investment strategies, leveraging technologies, insuring people with disability, corporate Social Responsibilities (CSR), improving & complying with professional standards, among others.
He said that NAICOM has already evolved certain initiatives in risk management and underwriting, product and service development, claims management, including sales and marketing.
“We are working with other stakeholders to raise awareness on environmental, social and governance issues, manage risk and develop solutions in the conduct of insurance business in Nigeria.
“We are working together with government at all levels, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues in the insurance sector,” he said.
Thomas also called on insurance companies to demonstrate accountability and transparency in regularly disclosing publicly, their progress in implementing these principles to relevant institutions responsible for monitoring and evaluation of compliance.
He also implored them to focus on climate change, flood and disaster management; monitoring population growth- Annuities Insurance Longevity; Green Technology- Work on Electronic Submission of regulatory returns and Renewal of Licenses etc; Investment and Strategy Support to Ethical Investment.
Speaking on the theme: “Transforming the Insurance industry Through ESG Principles: Directors’ Roles”, the NAICOM boss described it as apt, as it was specially couched in view of the fact that the world is going through rapid changes economically, socially, and environmentally and, the need to bring Directors of insurance entities to speed on these developments to enable sustainability.
“The role of board of directors in the survival and transformation of their establishments can never be over emphasized thus, this Annual programme is meant to apprise the directors with the developments in the industry and also equip them with necessary knowledge that will enhance the value of their companies.
“Consequently, for businesses to continually develop, they must take into consideration the community in which they operate, ensure consistent value to customers, maintain the highest standards of governance and ethics, and mitigate its overall impact on the environment,” he noted.
In the financial services industry, Thomas said there was an increasing realisation that sustainable practices have a positive potential to save costs, increase revenues, reduce risks, develop human capital and improve access to finance thus, ignoring sustainability issues increases legal and reputational risk.
