NAICOM Boss, Sunday Thomas

The Commissioner for Insurance, the National Insurance Commission (NAICOM) Mr Sunday Thomas, has called for improved Corporate Social Responsibilities (CSR) and Professional Standards in the insurance industry.

Thomas made the call while delivering his welcome address at the 2022 Insurance Directors Conference held n Lagos.

He noted that the theme for this year’s Conference “Transforming the Insurance industry Through ESG Principles: Directors’ Roles” was apt as it specially couched in view of the fact that the world is going through rapid changes economically, socially, and environmentally and, the need to bring Directors of insurance entities to speed on these developments to enable sustainability.

“The role of board of directors in the survival and transformation of their establishments can never be over emphasized thus, this Annual programme is meant to apprise the directors with the developments in the industry and also equip them with necessary knowledge that will enhance the value of their companies

Distinguished participants, we must take cognizance of the fact that
Industrialization and economic development have given rise to a wide spectrum of environmental externalities and social impacts bringing to the fore issues such as board structure, shareholder rights, business
ethics, risk management, incentives and executive compensation”, he said.
Thomas further state;
“Consequently, for businesses to continually develop, they must take into consideration the community in which they operate, ensure consistent value to customers, maintain the highest standards of governance and ethics, and mitigate its overall impact on the environment.
Sustainable finance, he said, which is the creation of economic value through the provision of financial services, now integrates Environmental, Social and Governance (ESG) considerations for the lasting benefit of
stakeholders and the society at large, he said.

He noted that the objective was to achieve a balance in the pursuit of economic prosperity with environmental protection and social development.

In the financial services industry, he said there was an increasing realization that sustainable practices have a positive potential to save costs, increase revenues, reduce risks, develop human capital and improve access to
finance thus, ignoring sustainability issues increases legal and reputational risk.

“While not trying to pre-empt the presentations of the experts, let me attempt a definition of corporate sustainability and ESG if only for us to appreciate the enormous task ahead of us as board members. Corporate Sustainability refers to an overall approach to managing
organizations that prioritize environmental and social value creation alongside the traditional goals of profitability and growth. And ESG
(Environment, Social, and Governance) are the three broad categories within which corporate sustainability is measured.
In this instance, environment will refer to the impact an insurance institution’s operations have on the environment and the steps taken to reduce it while social is how insurance institutions manage their relationships with the people who work for and with them, as well as the local communities within which your companies operate. Of course we
are aware of what governance is; the internal governance of the insurance institutions. Its compliance with regulations, internal controls
and checks, decision-making processes, and protection of stakeholder rights.
It is pertinent to point out here that sustainability reporting is becoming
more and more prevalent and sought for not just by governments through regulations, but also by stakeholders such as investors,
consumers, and employees. Increasingly, companies all over the globe are incorporating sustainability in long-term development strategies as well as their day to day operations
As your regulator, it’s our responsibility to draw your attention to this development and to continuously encourage you to comply “, he said.