The National Insurance Commission (NAICOM) has revealed plans to roll out a draft of Insurtech Operation Guidelines which will be released soon, to meet up with market changes.
The commission also called on the industry operators to embrace innovation to accelerate fast market changes, alongside changes in consumers’ preferences, tastes, and lifestyles.
This was the submission of the Commissioner for Insurance, Olusegun Omosehin, at the Insurance Meet Tech (IMT) 2024 conference in Lagos, while speaking on
The theme of the conference is “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration.”
The commissioner, who was represented by the Head, the Lagos Control Office of the commission, Dr Julius Odidi, said there are need for underwriting firms in the sector to develop products that meet the demands of consumers in the market, as innovation has taken the driving force in the financial services sector.”
According to him, organisations are leveraging technology to drive growth, improve efficiency, and stay competitive in an increasingly complex landscape,” he said.
Odidi noted that the increasing momentum of insurtech development poses both opportunities and challenges for established industry players.
He said, that to remain competitive, it is crucial that the commission proactively incorporate innovative insurtech solutions that would change conventional business models.
The commissioner added that this would safeguard the industry’s 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, recognising that change requires new approaches.
According to him, 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 the ways financial services are carried out.
“Hence, we must imbibe technology for us to have a one-stop shop for insurance products and services,” he said.
He expressed that commitment extends to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry.
The commissioner noted that in achieving the objective of revitalising the insurance industry, fundamental issues plaguing the sector must be addressed.
Odidi, outlined some of these plagues as low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, digital transformation, and adaptation.
“The current NAICOM management recognises the urgent need to strategically reposition the insurance industry and place a high priority on certain areas that will potentially stimulate the transformation agenda of the insurance sector.
“As a commission, we have set out five priority areas for immediate implementation which include; safeguarding policyholders and improving confidence in the industry, strengthening our supervisory capabilities and organisational effectiveness.
“Also, 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,” he said.
According to him, revitalising the Nigerian insurance industry to risk-manage Nigeria’s one trillion dollar economy speaks to the insurance industry’s readiness to de-risk the activities projected to galvanise productivity, innovations, economic growth, and development.
He noted that having sufficient capital that is commensurate to the risk of an insurer has become inevitable if the industry is to meet up with the consequential effect of a growing economy.
Also in a paper delivered at the IMT 3.0 conference, the Chief Executive Officer, Modion Communications, and the conference organiser, Modion Aleobua, said “IMT 3.0 is one of West Africa’s premier insurance events focused on the intersection of insurance and technology.
“The conferences designed to foster collaboration, innovation, and growth within the insurance industry by bringing together stakeholders, including thought leaders, regulators, insurtech innovators, investors and technology experts.”
“This year’s edition featured IMT Redefined – a youth-centric, lifestyle segment where Celebrities, Millenials, and Gen Z were given an audience to interact with the theme “Celebrating Lifestyle, Creativity and Afrobeats.”
According to Aleobua, “IMT Redefined seeks to inspire the next generation to view insurance as an essential tool for lifestyle.
“It is a fresh and dynamic segment of the Insurance Meets Tech (IMT) platform, designed to engage younger audiences, particularly Millenials and Gen Z. Unlike the traditional C-Suites series, IMT Redefined focuses on celebrating lifestyle, creativity, and Afrobeats. It aims to inspire this demographic to see insurance as an essential protection tool rather than just a financial product.”
