CFI, NAICOM, Olusegun Omosehin

 

Protocol
I am honoured to represent the Commissioner for Insurance, Mr. Olusegun Ayo
Omosehin, who is unavoidably absent due to unexpected exigencies of office and has
therefore directed I convey his sincere apologies for his absence. He also extends his
greetings to all participants at this Conference.
The CFI’s Keynote Address is as follows:
I am delighted to be in your midst this morning on the occasion of the 2024 IMT
Conference organised by Modion Communications. I commend the organizers of this
conference for convening experts in insurance and technology to explore innovative
partnerships, driving the development of a vibrant Nigerian insurance sector capable of
supporting the nation’s projected One Trillion Dollar Economy and meeting risk
management expectations.
Whilst my assignment here this morning is to present a Keynote Address on the theme
“Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar
Economic Aspiration” – it is pertinent to reiterate that the Commission plays a vital role
in fostering innovative business solutions that address pressing economic and social
issues in Nigeria’s insurance sector. This commitment extends to ensuring prompt
settlement of legitimate claims, promoting market growth through innovation, and
driving commercial value within the industry.
In achieving this objective of revitalising the insurance industry, we must of necessity
address the following fundamental issues plaguing the sector, which include among
others;
1. Low Insurance Penetration:
2. Lack of public trust
3. Market Fragmentation

 

Regulatory Reforms
5. Digital Transformation and adaptation
For instance, while the surge of COVID-19 raged in year 2020-2021 threatening global
safety and testing the abilities, resilience and preparedness of nations globally to deal
with the unexpected outbreak, the pandemic highlighted the need for digitalization. In
the insurance sector for instance, while lockdowns negatively impacted traditional
distribution channels, they also encouraged insurers to develop digital offerings. This has
come to show that investing in technology, online platforms, and mobile apps can
improve customer experience and accessibility.
Essentially, revitalizing the Nigerian insurance industry to risk-manage Nigeria’s One
Trillion Dollar Economy literally speaks to the insurance industry’s readiness and
preparedness to de-risk the activities that is projected to galvanize productivity,
Innovations, economic growth and development. With the rapid changes in technology
and economic/business environment, this discuss is not just timely but also topical to
reawaken the need for our dear industry to rise up to the current realities of what is
expected of us as an industry. This will lead us ask the question; are we where we should
be as an Industry? And your answers may definitely not be different from mine – No. A
further question will now be; how do we intend to get to where we should be?
First, upon the assumption of office of the current Management, we recognised the
urgent need to strategically reposition the insurance industry and place high priority in
certain areas that will potentially stimulate the transformation agenda of the insurance
sector. As a Commission, we have set out 5 priority areas for immediate implementation
which include;
– safeguarding policyholders and improving confidence in the industry,
– strengthening our supervisory capabilities and organizational effectiveness,
– Improving safety and soundness of the Nigerian insurance industry,
– fostering innovation and sustainability of the Nigerian insurance industry, and
– enhancing overall insurance accessibility and penetration in Nigeria.
In furtherance of the need to address the fundamental question of how to attain our
intended goals, we are resolved to place high priority to settlement of genuine claims as
that is the fundamental reason of our existence as an industry. One of the enshrined and
fundamental responsibilities of the Commission as a regulator is the protection of
policyholders, hence the Commission prioritized prompt settlement of all genuine claims,
fair treatment of policyholders and utmost transparency as some of the ways to boost
insurance industry’s image and support economic growth.

 

The post COVID-19 era witnessed a paradigm shift in business operations, driven by
unprecedented disruptions that necessitated innovative adjustments to ensure
continuity and resilience. This has led to the widespread adoption of AI and other
emerging technologies, catalyzing fierce innovative competition and impacts, product
development, service delivery, distribution networks and operations. As a result,
organizations are leveraging technology to drive growth, improve efficiency, and stay
competitive in an increasingly complex landscape.
It is worthy to state that the increasing momentum of Insurtech development poses both
opportunities and challenges for established industry players. To remain competitive, it
is crucial that we proactively incorporate innovative Insurtech solutions that will change
our conventional business models, thereby safeguarding our continued relevance in
addressing customer needs and market position. The Commission had since understood
this reality and issued the Regulatory Sandbox Guideline to accommodate the testing and
refinement of innovative products. Consequently, we established a Directorate for
Innovation and Regulation, recognizing that change requires new approaches. The
Commission has also completed a draft Insurtech Operation Guidelines which shall be
released very soon.
The current realities of economic instability, climate change, rapid technological
advancement, changing behaviour of consumers, soaring inflation and forex instability on
global financial markets have disrupted ways financial services are carried out. Hence, we
must imbibe technology in order for us to have a one-stop shop for insurance products
and services. Innovation and sustainability are some of the major emerging issues today.
The insurance sector must embrace innovation to meet up with the rapid market
changes, changes in consumers’ preferences, tastes and lifestyle. We must develop
products that meets the demands of our market as innovation have taken the driving
force in the financial services sector.
More critical to the theme is the issue of financial soundness and stability of insurance
institutions, as a strong financial base is key to our success as an industry. Having sufficient
capital that is commensurate to the Risk of an insurer has become inevitable if the
industry is to meet up with up with the consequential effect of a growing economy,
managing a one trillion economy and compete with our counterparts across the globe in
management of risks.
As I recently mentioned in my address to professionals in the industry, to achieve the
aforementioned the insurance industry must develop a wide range of new skill sets and
orientation, attract and retain talents, diversify our products spectrum, improve our
adaptability and agility, improve on transparency and openness, and importantly, invest
in technology. These and many more factors are to be considered if we must de-risk the