NAICOM gives insurers growth directives

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The National Insurance Commission has advised insurance companies on how to handle inflation impact on their operations, and need to beef up their technology for growth.

The Commissioner for Insurance, Mr Olusegun Omosehin, gave the advice at the Insurance Meets Tech event in Lagos on Friday, which was largely attended by representatives of different insurance companies, as well as youths and other stakeholders in the economy.

He said, “it is critical to note that navigating the current macroeconomic realities successfully would be a natural precursor and building blocks for the revitalization of the insurance industry in and this must of necessity prioritize;

“Inflation Impact: This has been a major concern for the insurance sector. Rising prices affect both insurers and policyholders. For insurance companies, it can make it difficult to operate profitably, especially if claims costs increase due to inflation. To mitigate this, insurers must carefully manage their investment portfolios, adapt pricing strategies, and maintain adequate reserves.

“Digitalization and adaptation: The need to embrace digitalization is critical. Insurers must modernize their processes, enhance customer experiences through digital channels, and invest in technology to streamline operations. Adapting to changing consumer behaviours and preferences is equally important. Offering online policy purchase, claims processing, and customer service can attract tech-savvy customers.”

While presenting the Keynote Address on the theme, “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration”, he noted that it was 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, he said, 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, he added, “we must of necessity address the following fundamental issues plaguing the sector, which include among others; Low Insurance Penetration, lack of public trust, and market fragmentation.”