The National Insurance Commission has called on operators in the Nigerian insurance industry to translate the sector’s recent recapitalisation into stronger underwriting capacity, improved claims payment, innovation and greater public trust.
The Commissioner for Insurance, Olusegun Omosehin made the call at a conference where he was represented by the Head of the Lagos Control Office, Dr Julius Odidi.
The conference, themed “From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria’s Insurance Sector,” focused on the industry’s next phase following the conclusion of its recapitalisation exercise.
Speaking on behalf of the commissioner, Odidi said the industry must move beyond measuring the success of recapitalisation by the amount of capital raised and focus on what the additional capital enables insurers to achieve.
“It reminds us that financial strength, while necessary, is not an end in itself. The true purpose of capital is to create capacity; the capacity to underwrite risks, the capacity to pay claims, the capacity to innovate, the capacity to inspire confidence, and ultimately, the capacity to support economic growth and national prosperity,” he said.
Odidi further stressed that recapitalisation would only be meaningful if it resulted in better service delivery, stronger corporate governance, technological advancement, prompt claims settlement and improved customer experiences.
He urged operators to assess the impact of the reforms by examining whether their increased financial strength had improved underwriting capacity, claims-paying ability, customer satisfaction and public confidence.
The NAICOM representative also identified Nigeria’s growing population, infrastructure development, digital economy, agricultural transformation and expanding middle class as opportunities for the insurance industry to increase its contribution to the economy.
On innovation, Odidi said technological advancement had become critical to the survival and relevance of insurance companies as consumer expectations continued to evolve.
“In today’s world, innovation is no longer optional it is the currency of relevance,” he said.
He encouraged insurers to deploy technology, data analytics and artificial intelligence responsibly to simplify processes, improve customer service and develop affordable insurance products.
Odidi also identified public trust as a major factor affecting insurance penetration, saying the industry must consistently demonstrate its value by honouring its obligations to policyholders.
“Trust is the invisible foundation upon which the entire insurance industry rests,” he said.
According to him, claims settlement remains one of the clearest ways insurers can demonstrate their commitment to customers.
“The true test of any insurance company is not how many policies it sells. The true test is how effectively it responds when policyholders need support,” he said.
Odidi further stressed the importance of developing human capital to enable insurers to respond effectively to emerging risks, including cyber threats, climate related risks, artificial intelligence risks, supply chain disruptions, pandemics and geopolitical uncertainties.
“The industry’s capacity will ultimately be determined by the quality of its people,” he said.
He called for greater collaboration among regulators, insurers, brokers, policymakers, the media and policyholders to build a stronger and more sustainable insurance industry.
“The journey from capital to capacity is not one that NAICOM can undertake alone. It requires collaboration. It requires partnership. It requires leadership from every stakeholder represented in this room,” he said.
Odidi said the industry’s next phase should focus on converting capital into capability, capability into innovation and innovation into trust and sustainable growth.
(The Whistler)