Amaka Obiefuna

The Commissioner National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, has tasked insurance companies against the habitual private sector spirit geared towards profitability that have been the practice in the industry.

Omosehin who was speaking on Wednesday August 21, 2024 at a media briefing in Lagos, revealed his plans to chart a transformative course in the industry that will give priority to public interest and not profitability, focusing on consumer protection.

He said: “All my previous roles in the private sector were guided by one consideration; profitability.

“But with my new appointment as the leader of NAICOM, my priorities had to change drastically. The first step was unlearning those profitability motives and relearning the importance of serving the public and defending the interests of consumers.”

To achieve his new dream for the industry, the Commissioner said he has been in wide consultations with key stakeholders in the industry, including the Nigerian Reinsurance Corporation (NRC), the Nigerian Council of Registered Insurance Brokers (NCRIB), lawmakers responsible for insurance oversight, and consumer advocacy groups.

He disclosed that the engagements have given birth to a strategic blueprint for the future of the insurance industry in Nigeria. At the heart of this plan are five key priorities that will guide NAICOM’s efforts to regulate, supervise, and develop the industry.

The first priority according to him is to rebuild public confidence in the insurance industry. While acknowledging the industry’s struggles with declining public trust, he cited instances where insurers failed to meet their obligations to policyholders.

He stressed that the primary focus is now on safeguarding the interests of policyholders which would restore the public’s trust in the industry.

The second priority is to strengthen NAICOM’s internal capacity to regulate the industry effectively. He said this includes enhancing the legal and regulatory framework to ensure that the Commission can take decisive action without being hampered by legal challenges.

“We want NAICOM to have the same kind of powers that other financial regulators have, such as the Central Bank of Nigeria,” Omosehin pointed out.

The third priority is ensuring the financial soundness of insurance operators. He emphasised the need for operators to meet their obligations and suggested that NAICOM may consider raising the minimum capital requirements to enhance the stability of the industry.

Innovation is the fourth priority, with NAICOM creating a new directorate focused on fostering innovative ideas within the industry. “We want to invite new ideas that can transform the industry. We believe that innovation is key to driving growth and development in the insurance industry,” he noted.

The fifth priority is improving accessibility and penetration of insurance in the Nigerian market. This, he said, includes enforcing compulsory insurance policies and ensuring that the benefits of insurance reach a broader segment of the population.

The NAICOM boss maintained that the industry has to be positioned to meet the federal government’s ambition of achieving a $1 trillion economy, stating that the Commission would no longer condone managers of ailing insurance companies.

He vowed that people who have been involved in the failure of insurance companies would be blacklisted and barred from taking up positions in the insurance industry.

In view of this, he said that NAICOM has been following statutory processes in handling ailing companies, stating however, the Commission is not interested in killing companies, but ensuring that they are revived to ensure protection of policyholders.

“The future of the Commission and the industry is brighter now than ever,” the NAICOM Commissioner said, promising regular engagements with the  stakeholders and media to reposition and project the industry better.