The Federal Commissioner for Insurance(CFI), Mr. Olorundare Sunday Thomas has expressed deep conviction and faith in the future of Nigerian insurance industry arguing that the industry is poised to experience a new down in all facets of its regulatory policies, leveraging technological innovations, and a positive paradigm shift focused and poised to meet the anticipated surge in the demand side of the economy.
He further pledged that the commission would continue to work closely with the Gentlemen of the Press to improve the existing relationship, as well as improve perception of the insurance industry and increase insurance awareness.
Mr Sunday Thomas expressed his strong faith in the future of Nigerian insurance industry on the occasion of this month’s edition of the seminar for insurance editors held at Oriental Hotel in Lagos state.
In line with the theme for this year’s seminar “The Future of the Nigerian Insurance Sector in a Shifting Landscape” the commissioner stated that the theme of this month’s seminar was specially couched considering that a lot has changed in our business environment over the last few years.
In his speech, he envisaged a global business environment that would continue to grapple with the lingering effect of the Covid-19 pandemic and the ongoing Russian and Ukraine war that is impacting negatively on world economies.
According to him, ‘‘a lot of us are still struggling with what has changed and how to really sort facts from fiction in the environment. Considering the rates of inflation and foreign exchange, security challenges and how we as insurers could help alleviate the inherent risk facing insurance consumers and being a source of long-term funding for capital projects.
‘‘As regulators, we would continue to consolidate on the administration’s cardinal agenda of developing the market and fostering insurance inclusion along with mutual collaboration of the press and other relevant stakeholders. Consequently, the Commission will continue its execution of various regulatory and market development initiatives to uplift the insurance sector to a global standard. Some of these initiatives include:
‘‘Engaging stakeholders including state governments towards ensuring domestication of the laws to ensure compliance with compulsory insurances and improve the business of insurance in their respective states. (2.) Driving the Market Development and Restructuring Initiative (MDRI) to promote compulsory insurance products
(3.) Feasibility Assessment for Index Based Risk Transfer Solution in the agricultural sector
(4.) Financial Inclusion Drive via focused Insurance awareness campaign for the financially excluded.
(5.) Launch of the Insurtech Accelerator Platforms under the Insurance Market Development programme i.e Bimalab Programme in conjunction with FSD Africa. (6.) Ongoing synergy with FSD Africa on developing a Risk Based Capital Model for the Nigeria.
Going by the theme for the seminar, the commissioner noted that insurance over the ages has always been seen as a business that exists for the survival of other businesses, and that at this period of rejuvenation, it calls for the Nigerian insurance sector to develop innovative products and distribution channels, embark upon massive infrastructural development, improvement in social safety nets scheme, rejig business continuity plans and general deployment of technology to meet the expectation of today’s consumers and create new experiences that add value.
Furthermore, he stated that the insurance sector plays a vital role in financial inclusion because it reduces the poverty line, assist people to manage their risk and protect them from negative adverse effect of any unforeseeable circumstances, as well as, increases access to other financial services.
‘‘In today’s modern business environment, disruption plays an integral part of any business, hence innovation being implemented by the Commission is geared towards gaining control of a specific segment of the market that have been left untapped by encouraging the introduction of products tailored to the consumers in order to grow insurance businesses.
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