Many countries and indeed, economies across the globe have been confronted with numerous challenges in recent years, Nigeria inclusive. The insurance sector notwithstanding its resilience is not immune to this challenge thus the need to constantly retool our business strategies.
The Commissioner For Insurance (CFI), the Chief Executive Officer of the National Insurance Commission (NAICOM) Mr. Olorundare Sunday Thomas sated during his welcome address at The 2021 Insurance Directors’ Conference Held At Radisson Blu Hotel, Ikeja, Lagos On November 24, 2021.
“I want to warmly welcome you all to this important gathering meant for one of the most critical group in the stakeholders’ structure of insurance companies. The role of the Board of Directors in the success or otherwise of any company remains very vital. This annual conference for Directors of insurance companies is organised to continually remind us of our responsibilities to our various companies and to upgrade our knowledge of recent developments in the sector, he added.
“I will want to appeal that respective management of all insurance companies ensure the full participation of members of their board of directors at the conference.
“Let me say this for emphasis, this forum should not be seen as a jamboree, but rather serious business where Directors are expected to interact, discuss and compare notes towards aligning and re-aligning their strategic business plans and governance structures to meet certain prevailing socio-economic developments.
Thomas noted that as a Commission, we take the participation of companies in this forum very seriously and thus do not take it lightly poor representation and participation by members of board of directors.
He pointed out that many countries and indeed, economies across the globe have been confronted with numerous challenges in recent years, Nigeria inclusive.
According to him the insurance sector notwithstanding its resilience is not immune to this challenge thus the need to constantly retool our business strategies. The theme for this year’s Conference “Insurance Industry in a Changing World” surely speaks to the fact that the world has become ultra-dynamic, he stressed.
“The rapid changes brought about by the COVID-19 pandemic in many fronts have drastically opened doors of opportunities for many positive thinking minds and created serious setback for many who are not able to cope with the speed at which some of these changes appeared.
“An obvious example is the technological advancement in the insurance industry which has been accelerated by the COVID-19 pandemic compelling many of us to shift from the traditional ways of conducting business to more sophisticated and technology driven mechanisms.
“Indeed, am able to address you this morning virtually because of technological advancement popularised by the advent of the pandemic. While it has not been so difficult for some companies to adapt to the new world order, a lot of other companies have been struggling to cope, he added.
“The Commission on its part successfully launched the NAICOM Portal on 1st September, 2021 deployed to ensure effective and efficient interface between the Commission and our stakeholders. He stressed that the Commission had since directed all operators to integrate their operations with the portal. It is imperative to inform you here that any company that is lagging behind in this regard is inadvertedly phasing itself out of business. Your respective attitude towards information technology funding in your various companies will go a long way in determining the longevity and existence of not only the companies, but the retention of the brand names or corporate identities. This is food for thoughts.
Again, the volatility, dynamism and complexities in the operations of today’s businesses has necessitated the need for a risk-based approach to the way and manner the Regulator conducts its supervision and inspection of insurance entities.
It is on this premise that the Commission commenced the implementation of Risk Based Supervision (RBS) of the sector. We incepted the conduct of a pilot inspection of some select companies in September this year preparatory to full implementation and the reports are now being reviewed. Going forward, inspection of insurance entities will be on the RBS approach.
NAICOM concluded saying We indeed manage an industry that helps others to survive but, you may all agree with me that the insurance industry needs to survive first in order to conveniently shoulder the responsibility of helping other businesses to survive. According to him, the future of insurance is arguably the future of our economy. We are all leaders in our own rights and the success or failure of the sector is in our hands as decision makers, he stated.