NAICOM unveils 10 years growth plan as insurers assets hit N2.3trn in 2022
Barbara Bako, Abuja
The National Insurance Commission (NAICOM) on Monday unveiled a 10-year strategic plan for the growth of insurance industry as part of the efforts to attract more investments and ramp up risk underwriting capacity of the insurers.
The commissioner for Insurance, Mr Olorundare Sunday Thomas, disclosed the new strategic direction for the prosperity of the industry at the ongoing 2023 National Insurance Conference in Abuja.
According to Mr. Thomas, “Over the next decade (2024-2033), the Insurance industry will seek to continue its transformation journey along the Seven (7) strategic thrusts.”
The strategic thrust, NAICOM boss said, includes “Transforming the regulatory environment to sustain the industry growth; transition to risk-based capital model; Promote insurance awareness and adoption; broaden insurance product offerings and improve effectiveness of distribution channels.”
He said: “Enhance digitalization of the insurance industry; deepen the industry’s talent pool and capabilities, support Nigeria’s economic transformation and sustainability agenda,” he added.
Commenting on the industry’s performance he said, “Between 2014 and 2022, the industry premium income grew at an average of 13.6%; from a premium income of N282 Billion to N726.2 Billion.”
“The total assets of the sector also grew at an average of 12% for the same period; from an asset base of N827.5 Billion in 2014 to N2.33 Trillion in 2022.”
He highlighted the flagship projects being implemented by the commission as part of its medium term NAICOM Strategic Plan 2021–2023 as, “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, Thomas said, 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.
He noted that 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.
The initiative has also Opened up the insurance supply-side through licensing of twelve (12) additional new entrants and expansion of insurance distribution channels
“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,” Thomas explained.
The Commission, he said, also provided financial assistance to tertiary institutions in Nigeria to facilitate education of professionals required by the insurance sector.
He said that Commission’s projects in five (5) tertiary institutions have been concluded and some commissioned while seven (7) others are at various stages of completion.
NAICOM boss enumerated some of the challenges affecting the desired growth of the insurance as Talent gap, Comparatively low public awareness, Insurance affordability, Lack of trust and confidence in insurers, cultural and religious bias, Inadequate distribution channels, Low enforcement of insurance, and others.
The National Insurance Conference is one of the initiatives of the Commission to achieve the objective of incentivizing the law enforcement agencies, State Governments, relevant professional bodies and all other stakeholders. The conference will also sensitise the general public and create the needed awareness of the place of insurance in redefining safety in Nigeria.
