Nigeria’s Commissioner for Insurance, Sunday Thomas, says the Nigerian Insurance Industry has the potential to be a major driver of advancing national development through freeing Government dwindling resources usually deployed to mitigate losses to citizens arising from fundamental risks and catastrophic events.The Insurance Commissioner stated this at the Chartered Insurance Institute of Nigeria (CIIN) 2023 Business Outlook Conference with the theme “Reshaping the Financial Sector: Emergent Challenges and Opportunities” held in Lagos that Insurance should take the first place in peoples Financial Planning owing to the crucial role it plays.
In his words: ,”insurance operators to make insurance part of financial services offering to the people.
As the head, the National Insurance Commission (NAICOM), Thomas reiterated that operators should incorporate insurance as an integral part of financial plans of individual, entities and businesses
He further noted that Insurance as a risk mitigation tool prepares everyone for unforeseen circumstances and losses instead of enhancing unexpected borrowings.
Naicom boss therefore charged Insurance Companies to take rightful place by not just supporting only from the back end but take the lead in financial planning of customers.
This, he said would increase understanding of the Customers’ businesses and further the course and boost the financial status of insureds.
Thomas called on the insurers to come up with the right products
“It is the deep understanding of the Customers’ businesses that aids Insurers to gain insight into the financial status of the Customers thereby helping to market the right product, rather than struggling to Sell what had been produced. That is, “Develop Product that could be Sold” but do not “Try to Sell what had been Produced”, he said.
He noted that insurance industry have been exposed to the direction of the Government through the 2023 Budget and the focused Industries and as well as strategic expenditures that could enhance the Insurers’ prioritized markets for appropriate products that will ensure that insurance is seen in every line item of the budget.
The growth of an economy on a long-run basis, he said was linked with activities of the insurance market.
Speaking further, Thomas said borrowing from the research work of Abdullatif Alhassan and Nicholas Biekpe in exploring Causality Analysis, their findings revealed that insurance market development in economies that experiences supply-leading hypothesis is important for stimulating economic growth.
In his word: “the Nigerian Insurance Industry has the potential to be a major driver of advancing national development through freeing Government dwindling resources usually deployed to mitigate losses to citizens arising from fundamental risks and catastrophic events.
It is expected that the ongoing development of the Insurance Industry 10 year development plan will be unveiled in the first half of the year for structured and inclusive growth of the insurance sector. he assured.
The Commissioner therefore called on the industry players to come up with innovative products and improving technical capacity of its staff among others.“
He added, that Whilst the National Insurance Commission is deeply desirous to create a conducive environment that will support the Insurance Market in maximizing investment in the sector, there must be deliberate policy of introducing innovative products and improving technical capacity of its staff among others.
Naicom boss urged the industry to reciprocate with efficient service delivery, adding that the commission would continue to intervene and encourage few others, that are yet to fully adopt the benefits of innovative new technologies, to do all that they can within the area of their operation.
Also speaking at event, Edwin Igbiti, President/Chairman of Council, Chartered Insurance Institute of Nigeria (CIIN) saying this programme among other things, examines the national budget, reviews the thrusts of the fiscal and monetary policies of government and estimate how these would influence the insurance industry in particular and the economy in general.
He added that this first session of this conference is expected to envisage the 2023 national budget, most especially the aspect that relates to the Insurance Industry and how the industry can reposition itself.
“The objective of this conference is to review business and financial activities, share ideas, project proponents for profitability and proffer solutions and recommendations to operational challenges in the country.
Igbiti tags the event as a platform to discuss the National Budget as it relates to the financial sector, meet professionals from different professions in the financial world and share expertise on the issues pertinent to the growth and development of the Nigeria economy.
