Management Staff of National Insurance Commission (NAICOM) With The Commissioner For Insurance, Sunday Thomas (3rd from left) at 2021 Annual Seminar For Journalists held in Lagos.
Bisi Bamishe
Last week in Lagos, National Insurance Commission (NAICOM) held its annual seminar for journalists at Lagos Oriental Hotel. The event which commenced in 2009 in Benin, is organized annually by NAICOM as part of its training and capacity building programme for Insurance journalists. This year, the two days event took off on Thursday evening with dinner night. Welcoming journalists majorly drawn from media houses in Lagos and Abuja, the deputy commissioner for Insurance, Sabiu Abubakar disclosed that the risk bearing industry will soon begin to experience new reforms, strategic plans, digital and market development that will transform the sector.
The following day, the Chief Executive Officer of NAICOM, Sunday Thomas whose appointment as the substantive Commissioner for Insurance became effective on April 30, 2020, having been appointed in acting capacity in August 2019, reeled out various achievements of the Commission in the past one year.
In his key note address on “My One Year Experience On The Driving Seat”, Thomas noted that the Commission has been able to achieve stability in the insurance industry with evidence in the enhanced role the sector continues to play in the nation’s economy. He also unveiled a 5-Point Strategic Plan (2021-2020) that will drive insurance business and deepen its penetration in Nigeria.
He disclosed that N9.2bn was set aside as group life premium for 2021-2022 insurance cover for federal civil servants and paramilitary just as the level of insurance participation in pension matters received boost. On 1st September 2020, NAICOM and National Pension Commission (PenCom) jointly issued aguidelines on Retiree Life Annuity and Employee Group Life Insurance Policy. The current pension reach for insurers was achieved by this joint action of NAICOM and PenCom.
Another area of participation by the insurance industry is in the oil and gas sector. According to him, there is a guideline in the works that will seal the leakages which hitherto made it difficult for the local content to make a mark for Nigerian participation. He assured that the law on Nigerian content will receive a boost from the guidelines, which no doubt will increase insurance participation in this area.
Noting that the driver of the economy is the financial sector, Thomas said that the Commission has taken financial inclusion very seriously. To this effect, two Takaful insurance companies have been licensed in addition to the existing two. Adding that the Commission is conscious of the fact that insurance sector is knowledge based , CFI disclosed that there is on going development of more actuarial analysts capacity in the industry as the first step of having more qualified actuaries in the country. Also, NAICOM in the past one year, have been working to assist some tertiary institutions in the development of their actuarial programs.
Insurance as technology driven business, achieved a feat during the period under review. The Commission successfully completed the first phase of its portal. The portal started nine years ago, but until last year, nothing was happening. Today, the functioning portal is already up and running.
In an attempt to increase insurance penetration in the country as well as increase government participation in insurance business, the Commission is currently engaging state governments to draw them closer and bring the gospel of insurance to their door steps. In the last one year, some states governors have been visited by the Commission.
According to him, the traditional method of distributing insurance is out dated. So, the Commission is exploring other channels and will soon develop modern and effective channels, “We must begin to develop other channels. There are few of the channels that have been developed. We are waiting for final touches for them to be released”, he stated.
Thomas disclosed further that from 1st of June, 2021, corporate governance become effective in the industry, to ensure that whatever is been brought into insurance industry is protected.
In a bid to improve human capacity development, plans are almost completed to set up an academy in the risk bearing industry. Already, the Commission has acquired a property for it and is currently being worked on adding, “we are believing by the end of the third quarter or beginning of the fourth quarter 2021, NAICOM Academy will take off”.
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The Commission is set to grow life and non-life insurance businesses as never before, Thomas emphasized. As part of this, NAICOM is exploring ways of attempting to enhance insurance development and growth through the operators’ participation in policy formation.
In the next two months, NAICOM will be ready to implement Risk Based Supervision policy, according to the Commissioner who said that “the relevant persons have been trained, the necessary skills acquired and the instrument that will enable the implementation, have been developed. Risk Based Supervision policy is a system in which the supervising authority, NAICOM will allocate time and resources to companies based on the level of risk inherent to their balance sheets.
On the enforcement of compulsory insurance, the Commissioner stated that NAICOM has embarked on various engagement measures across the country. Aside visiting state governments to solicit for their support, NAICOM is also working in collaboration with the Federal Road Safety Corps, Federal ministry of transportation, Federal Fire Service, among others.
Aside the Commissioner’s key note address, three papers were presented. Head, strategy and special duties, Usman Jankara presented a paper on “Corporate strategy of the Commission 2021-2023, Head, IT Abiodun Aribike spoke on NAICOM ‘s Digital Transformation Progress So Far and Head GCB, Ahmed Adamu who talked about “Claims Settlement and Complaint Handling Mechanism: Activities of the Complaints Bureau Unit of NAICOM.”
The annual event ended with an open forum/interactive session with the Commissioner and management staff of NAICOM.
