The National Insurance Commission (NAICOM) has unveiled some transformational plans, including the recapitalization of insurance companies, to improve insurance practices, performances and also drive growth in the industry.
The National Commissioner for Insurance and Chief Executive Officer (CEO) of the NAICOM, Mr. Olusegun Omosehin, during an interactive session with journalists on Wednesday, said that the strategic plans focused on five key priorities that will guide the Commission’s efforts to regulate, supervise, and develop the nation’s insurance industry.
Omosehin, who spoke on the strategic plans, also reflected on his latest appointment from the private sector as National Commissioner for Insurance, noting that this places the need on him to prioritize the public good and consumer protection over profitability.
He said: “All my previous roles in the private sector were guided by one consideration—profitability. But with my new appointment as the leader of NAICOM, my priorities had to change drastically. The first step was unlearning those profitability motives and relearning the importance of serving the public and defending the interests of consumers.”
According to him, the commission has been engaging in extensive consultations with key stakeholders, including the Nigerian Reinsurance Corporation (NRC), the Nigerian Council of Registered Insurance Brokers (NCRIB), lawmakers overseeing the insurance sector, and consumer advocacy groups, culminating in the development of a strategic blueprint that will shape the future of the insurance sector in Nigeria.
The Commissioner said he intended to leverage the strategic plan to rebuild public confidence in the sector based on the waning trust in the insurance industry due to some instances where insurers failed to meet their obligations.
Omosehin stressed that safeguarding policyholders’ interests had now become NAICOM’s primary focus, adding that “by protecting policyholders, we believe we can rebuild the public’s trust in our industry.”
Similarly, he spoke on the strengthening commission’s regulatory capacity, highlighting the need to enhance internal capabilities and the legal framework to enable decisive regulatory action.
The commissioner clarified: “We want NAICOM to have the same kind of powers that other financial regulators have, such as the Central Bank of Nigeria.”
Stressing the importance of financial stability among insurance operators, he hinted that NAICOM might consider raising minimum capital requirements to strengthen the sector’s financial soundness.
In addition, while describing innovation as a critical driver of economic growth, Omosehin spoke on plans by the NAICOM to establish a new directorate with focus on encouraging innovative ideas within the industry, adding that “we believe that innovation is key to driving growth and development in the insurance sector.”
On plans by the commission to improve insurance accessibility and penetration, the commissioner listed some of the components as including enforcing compulsory insurance policies and ensuring that a broader segment of the population benefits from insurance coverage.
