Insurance industry’s stability crucial for economic development

The National Insurance Commission (NAICOM) said the risk-underwriting industry’s financial soundness remained crucial to supporting businesses’ contribution to the $1 trillion economy target set by the current administration.

This was stated in a paper delivered by the Commissioner for Insurance, Olusegun Omosehin, at the 9th yearly Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) held in Lagos.

The commissioner who was represented at the forum by the commission’s Head of Corporate Affairs, Abba Halil Inuwa, said adequate capitalisation, complemented by insurers’ risk profiles, remained vital for the insurance industry’s growth.

The commissioner pointed out that the desired and pragmatic support for a $1 trillion economy could be achieved by leveraging technology to enhance insurance accessibility.

He said consolidated financial solutions and one-stop shops have become the norm, necessitating the insurance industry’s adoption as a critical sector of the economy to remain relevant.

According to him, as a regulator, the commission is committed to creating an enabling environment that will consistently enhance the increased capacity of the insurance institutions as well as ensure that the insurance industry becomes stronger and more stable in delivering on its responsibilities.

He said the theme of the conference resonated with the insurance sector’s aspiration of contributing significantly to the projected $1 trillion economy, adding that recently the insurance sector had been at the forefront of discussions regarding its potential to unlock our economy’s growth.

According to him, insurance has been playing a critical role in mobilising savings, managing risk, ensuring financial stability, creating job opportunities and driving long-term projects and infrastructure development.

To achieve its objectives, the NAICOM boss said the commission had implemented various market developmental initiatives aimed at enhancing the insurance sector’s competitiveness and robustness.

“In line with the insurance industry roadmap, we have identified five critical areas for immediate implementation. With the current strategies in place, the Nigerian insurance market is poised for rapid and stable growth, characterised by significant improvements in operational statistics.

“A collaborative effort among sector stakeholders will facilitate seamless growth. Our collective focus must remain fixed on fulfilling obligations to policyholders”, he added.

Omosehin stressed that prompt settlement of genuine claims remained crucial to market growth, addressing the sector’s obvious and perceived challenges even as he noted the essential role NAIPE had been playing in shaping and maintaining a positive perception of the insurance industry and the financial sector at large.

The Chairman of the event and former Commissioner for Insurance, Fola Daniel, said the theme of the conference was not just timely but insightful, as the country continues to navigate the challenges in the global insurance market.

According to him, the mission of NAIPE has always been clear – to enhance the quality of information disseminated to the public and to foster a deeper understanding of the complexities within our industries.