By David Akinmola
The National Insurance Commission (NAICOM) has stressed the need for the industry to collaborate with a country that emerged as a global leader in insurance to transform Nigeria’s insurance sector.
The commission said during a meeting with the High Commissioner of the High Commission of Malaysia to Nigeria, to see how the two can partner to reshape the nation’s approach to insurance development.
In the meeting, the Commissioner for Insurance, Olusegun Omosehin, reflected on the NAICOM’s regulatory and developmental mandates and spotlighted the immense growth potential of Nigeria’s insurance sector. Drawing comparisons with Malaysia’s success in Takaful insurance—a specialized Islamic insurance model—he identified Malaysia as an exemplary benchmark for Nigeria’s aspirations.
To achieve the latter, the commissioner recommended studying countries with similar characteristics, such as Malaysia, which has witnessed rapid growth in Takaful Insurance over the past three decades. This approach would enable the commission to identify best practices, gain valuable insights, and adapt strategies that have proven successful in similar markets.
According to him, through exploring international models and benchmarking against industry leaders, the commission aims to create a more conducive environment for insurance growth in Nigeria, ultimately benefiting policyholders and stakeholders alike.
The CFI noted the significance of knowledge sharing to replicate successful models in Nigeria, particularly in achieving President Bola Ahmed Tinubu’s vision of a $1 trillion economy. This goal, aimed to be accomplished within eight years, relies heavily on collaborations with foreign governments, including Malaysia.
Given Nigeria’s low insurance penetration, the potential for growth and investment is substantial. Notably, the country has made progress in the Takaful insurance sector, expanding from a single company in 2013 to six companies currently under the commission regulation.
To tap into this potential, the CFI emphasised the need for knowledge sharing and strategic partnerships. By learning from Malaysia’s experiences and best practices, Nigeria can accelerate its economic growth and development, ultimately achieving the ambitious goal of a $1 trillion economy, he said.
The NAICOM boss also notified the Malaysian High Commissioner of the newly passed insurance bill by the Senate, which now awaits concurrence from the House of Representatives. This bill is expected to significantly boost capital in the insurance industry and create new investment opportunities.
By enhancing the regulatory framework, the bill seeks to promote the growth and development of the insurance industry in Nigeria, ultimately contributing to the country’s economic growth.
Speaking also at the meeting, the Malaysian High Commissioner, Aiyub Omar, in response said he was thrilled by the reception by the commission and expressed interest in collaboration.
He explained Malaysia’s expertise in Takaful Insurance, emphasising the potential for bilateral agreements to drive growth in Nigeria’s insurance industry, particularly in the Takaful sector.
Noting NAICOM’s strong interest in developing the industry, the High Commissioner pledged to facilitate connections between Malaysian Takaful insurance companies and Nigerian stakeholders, paving the way for further investment and cooperation. This partnership could leverage Malaysia’s experience in Takaful insurance, which has been a significant contributor to the country’s Islamic finance sector.
Omar expressed interest in capacity building for NAICOM staff, proposing a training programme led by Malaysian resource personnel. This programme will aim to augment the skills and knowledge of NAICOM staff as regulators, ultimately adding value to the Nigerian insurance industry.
This initiative aligns with NAICOM’s goals, which include strengthening supervisory capabilities, improving safety and soundness, and fostering innovation and sustainability in the Nigerian insurance industry. By collaborating with Malaysian experts, NAICOM can leverage international best practices to achieve these objectives.
