NAICOM Plans New Reforms, Initiatives for Insurance Sector

By Adedapo Adesanya

**Mulls Price Control Mechanism for Insurance Products

The National Insurance Commission (NAICOM) has expressed its readiness to put in place better reforms and initiatives aimed at further driving financial inclusion in the country through insurance.

Acting Commissioner for Insurance at NAICOM, Mr Sunday Thomas, made this disclosure while delivering his keynote address at the seminar for insurance journalists held at the Bristol Palace Hotel, Kano State on Monday.

Mr Thomas noted that many lessons were learned in the previous year and that the commission was working to build on them for a better insurance sector in Nigeria.

“We all experienced its positive and negative consequences, leaving us with the bitter-sweet lessons that will ultimately shape our decision making in this and subsequent years,’ he said.

Moving forward, Mr Thomas noted that the commission was shifting its focus away from compliance issues that it faced in previous to its market developmental responsibility.

“As the Year 2020 continues to unfold, giant strides will be made by the commission in all aspects of its statutory responsibilities. This is the time to put the past behind us and look forward to a better and more vibrant sector.

“The task of building an insurance sector of our dreams is a collective one and thus, all hands must be on deck to ensure our dreams become realities.

“We recognise the impact of conducive work environment to effective and efficient regulatory system and this will always remain our priority,” the NAICOM chief noted.

He further disclosed that the second phase of the soon-to-be unveiled Market Development and Restructuring Initiative (MDRI) will mark out clear targets and tasks for all stakeholders in the industry.

Speaking on the plan to increase acceptance of insurance in the country, the Acting Commissioner said, “We shall vigorously pursue the continued implementation of Compulsory Insurances in every nook and crannies of the country.

“We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance thus far hence, our resolve to work with relevant stakeholders to ensure a seamless drive.

“Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic national assets. We will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.”

He further said that the insurance sector was latching onto the financial inclusion strategy of the federal government developmental plan, stating that the commission has over the years invested in the development of financial inclusion mechanisms which includes the introduction of Microinsurance and Takaful Insurance products.

According to him, “The introduction of these lines of insurance is intended to deepen the penetration of insurance in the country and bring into the fold majority of the populace that are hitherto excluded.”

“So far, some milestones have been recorded in this regard with three standalone Microinsurance and four Takaful insurance companies already granted approvals,” he added.

He added that the right pricing of insurance products and effective deployment of technology for ease of transaction are among the key areas the commission will be working on this year.

“Digitalisation of insurance business is no longer an option, but an imperative which we all have to work towards its actualisation. As we may all be aware, the industry is currently lagging behind other financial services sectors in this area.

“The commission is working vigorously to see that all its operations are digitalised. The year 2020 is a year for us to turnaround the fortunes of the industry and this cannot be accomplished without digitalising our processes and encouraging the industry to imbibe same.

“The commission shall in the course of the year continue to introduce new reforms and initiatives in line with international best practices for attaining the level of growth and development we all desire for the sector,” he said.