WELCOME ADDRESS BY CFI SUNDAY THOMAS AT NAICOM CONFERENCE AT ABUJA
I am most delighted to stand before you this morning to welcome you to the National Insurance Conference 2023. 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.
Your Excellencies, His Excellency President Asiwaju Bola Ahmed Tinubu GCFR will also be launching the Insurance Sector 10-Year Strategic Roadmap and also the Guidance Note for the Insurances of Government Assets and Liabilities.
Your Excellencies, the stakeholders will be discussing current and emerging issues, generate ideas and insights which can be transformed into actionable strategies for effective enforcement of compulsory insurances by relevant authorities and agencies of government. It is also hoped that this will usher in a new era of collaboration which will facilitate improvement in National Safety Standards.
The Commission under my leadership has remained resilient and focused on implementing initiatives that will foster development of the Nigerian insurance industry and align its fortune with that of the nation as the Africa largest economy.
Your Excellencies, Permit me to briefly highlight the following flagship projects being implemented by the Commission as part of the its medium term NAICOM Strategic Plan 2021–2023:
i) 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
ii) Migration of the Commission’s supervisory regime to align with global best practices. This initiative has enhanced the Commission’s distress management and market restructuring.
iii) 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.
iv) Implementation of an actuarial capacity development programme for the Nigerian insurance industry. 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.
v) Opening up the insurance supply-side through licensing of twelve (12) additional new entrants and expansion of insurance distribution channels, etc. 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.
vi) 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
vii) The Commission has continue to reach out to State governments and relevant security agencies in the enforcement of compulsory insurances.
viii) The Commission also provided financial assistance to tertiary institutions in Nigeria to facilitate education of professionals required by the insurance sector. Projects in five (5) tertiary institutions have been concluded and some Commissioned while seven (7) others are at various stages of completion.
Notwithstanding the growth that had been sustained, the roadmap enumerated some of the challenges affecting the desired growth of the insurance industry which had persisted, such 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.
In terms of its performance Your Excellencies, the industry premium income between 2014 and 2022 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.
Your Excellencies, I am pleased to mention that over the next decade (2024-2033), the Insurance industry will seek to continue its transformation journey along the following Seven (7) strategic thrusts with the objective of achieving the corresponding goals;
i. Transform the regulatory environment to sustain the industry growth
ii. Transition to risk-based capital model
iii. Promote insurance awareness and adoption
iv. Broaden insurance product offerings and improve effectiveness of distribution channels
v. Enhance digitalization of the insurance industry
vi. Deepen the industry’s talent pool and capabilities
Vii. Support Nigeria’s economic transformation and sustainability agenda
Your Excellencies, The Conference with the theme “Redefining Safety – Insurance Solutions for Public Buildings and Buildings under Construction” is only one out of numerous efforts of the Commission at creating the needed awareness of the general public of compulsory insurances. It has also created the platform to strengthen collaboration with relevant government and non-government agencies and other stakeholders. This is being done to ensure that enforcement of all classes of compulsory insurances across the country are carried effectively.
Once again Your Excellencies, ladies and Gentlemen I welcome you to the 2023 National Insurance Conference while we hope that the engagement will stimulate discussions that will be beneficial to all the participants.
I thank you for listening.
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