The National Insurance Commission (NAICOM), in a bid to deepen insurance and enhance grow the Nigerian economy has unveiled the insurance industry’s strategic vision for 2024-2033.
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According to the Commissioner for Insurance, Mr. Olorundare Sunday Thomas, this vision is built upon seven strategic pillars that encompass regulatory transformation, risk-based capital models, insurance promotion and adoption, product diversification, distribution channel optimization, digitalization, talent development, and support for Nigeria’s economic transformation.
Mr. Thomas announced this plan on Monday during the 2023 National Insurance Conference in Abuja, with the theme “Redefining Safety – Insurance Solutions for Public Buildings and Buildings under Construction.
These seven strategic objectives will guide the Commission’s transformation efforts over the next ten years. Additionally, NAICOM will launch the Guidance Note for Insurances of Government Assets and Liabilities.
“Your Excellencies, I am pleased to mention that over the next decade (2024-2033), the Insurance industry will seek to continue its transformation journey along the following Seven (7) strategic thrusts with the objective of achieving the corresponding goals;
i. Transform the regulatory environment to sustain the industry growth
ii. Transition to risk-based capital model
iii. Promote insurance awareness and adoption
iv. Broaden insurance product offerings and improve effectiveness of distribution channels
v. Enhance digitalization of the insurance industry
vi. Deepen the industry’s talent pool and capabilities
Vii. Support Nigeria’s economic transformation and sustainability agenda”
Mr. Thomas explained that NAICOM’s Strategic Plan 2021–2023 helped in “ensuring improved safety and soundness of the Nigerian insurance sector to continue to de-risk economic activities of Nigerians through the enhancement of our prudential regulatory tools and good corporate governance practices.
Migration of the Commission’s supervisory regime to align with global best practices. This initiative has enhanced the Commission’s distress management and market restructuring. Implementation of Project E-Regulation through operationalized Business Process Management Solution and NAICOM Portal.
The BPMS is currently being used to process applications from insurance institutions while the Portal remains the focal point for generation of unique policy identification numbers for all policies as well as repository for statistical data including verification of insurance policies issued in Nigeria.
Implementation of an actuarial capacity development programme for the Nigerian insurance industry. The programme has helped to develop some Certified Actuarial Analysts in Nigeria. The Commission will continue to engage relevant stakeholders with a view to developing additional Actuarial professionals for the industry.
Opening up the insurance supply-side through licensing of twelve (12) additional new entrants and expansion of insurance distribution channels, etc. The licensing of these companies has enhanced availability of insurance products as well as increase local insurance capacity in Nigeria.
This was historic considering that the last time an insurance company was licensed by the Commission before those recently licenced, was 10 years ago while that of any Reinsurance company was 32 years ago.
The Commission as part of its support to government initiatives mobilized the insurance industry to contribute the sum of N500million and free Life Insurance cover for front line workers in the management of the COVID-19 Pandemic
The Commission has continue to reach out to State governments and relevant security agencies in the enforcement of compulsory insurances.
The Commission also provided financial assistance to tertiary institutions in Nigeria to facilitate education of professionals required by the insurance sector. Projects in five (5) tertiary institutions have been concluded and some Commissioned while seven (7) others are at various stages of completion.
Regarding the insurance industry’s performance between 2014 and 2022, Thomas noted significant growth, with premium income increasing at an average rate of 13.6%, reaching N726.2 billion from N282 billion.
The total assets of the sector also expanded by an average of 12%, rising from N827.5 billion in 2014 to N2.33 trillion in 2022.
