NAICOM, Malaysia explore collaboration for improved efficiency

The National Insurance Commission (NAICOM) has stressed the need for the industry to collaborate with leading countries in insurance to transform the industry.

The commission said this during a meeting with the High Commissioner of the High Commission of Malaysia to Nigeria, Aiyub Omar, to discuss areas of partnership.

During the meeting, the Commissioner for Insurance, Olusegun Omosehin, reflected on NAICOM’s regulatory and developmental mandates and spotlighted the immense growth potential of Nigeria’s insurance sector.

Drawing comparisons with Malaysia’s success in Takaful insurance – a specialised Islamic insurance model –he identified Malaysia as an exemplary benchmark for Nigeria’s aspirations.

The commissioner recommended studying countries with similar characteristics to Malaysia, which has witnessed rapid growth in Takaful insurance over the past three decades.

This would enable the commission to identify best practices, gain valuable insights and adapt strategies that have proven successful in similar markets, he said.

According to the NAICOM boss, through exploring international models and benchmarking against industry leaders, the commission aims to create a more conducive environment for insurance growth, ultimately benefiting policyholders and stakeholders alike.
Omosehin noted the significance of knowledge sharing to replicate successful models in Nigeria to achieve President Bola Ahmed Tinubu’s $1 trillion economy.

“This goal, aimed to be accomplished within eight years, relies heavily on collaborations with foreign governments, including Malaysia.

“Given Nigeria’s low insurance penetration, the potential for growth and investment is substantial. Notably, the country has made progress in the Takaful insurance sector, expanding from a single company in 2013 to six companies currently under the commission regulation,” he said.

To tap into the potential, Omosehin emphasised the need for knowledge sharing and strategic partnerships. By learning from Malaysia’s experiences and best practices, Nigeria can accelerate its economic growth and development, ultimately achieving the ambitious goal of a $1 trillion economy, he said.

The NAICOM boss also notified the High Commissioner of the newly-passed insurance bill by the Senate, which now awaits concurrence from the House of Representatives.

This bill is expected to significantly boost capital inflow into the insurance industry and create new investment opportunities. Omar, in his response, said he was thrilled by the reception by the commission and expressed interest in collaboration.

He explained Malaysia’s expertise in Takaful insurance, emphasising the potential for bilateral agreements to drive growth in the industry.