NAICOM unveils plans to support $1tn economy

The National Insurance Commission has highlighted the five key priorities it has set to drive its contributions to achieve the $1tn economy target of President Bola Tinubu.

The Commissioner for Insurance, Olusegun Omosehin, revealed this agenda at the 2024 Insurance Directors’ Conference held in Lagos on Wednesday.

In October 2023, Tinubu at the 29th Nigeria Economic Summit in Abuja told business leaders that Nigeria’s economy can grow to $1tn by the end of the decade with the assurance that his government can ensure “double-digit, inclusive, sustainable, and competitive growth.”

Since the declaration, several government agencies and organisations have been setting in motion programmes and initiatives to drive the goal.

Speaking at the event, Omosehin said, “On our part, the National Insurance Commission is committed to aligning the insurance sector with the President’s goal of growing the Nigerian economy to $1tn by 2030 and achieve this. The commission is committed to creating the necessary regulatory framework required to achieve meaningful contributions from the insurance sector.

“De-risking a trillion-dollar economy takes more than mere rhetorics. To this end, we are fully committed to working with the National Assembly in delivering the required legal and regulatory framework that would flow from the successful passage of the 2024 Insurance Reform Bill.

“Also, as part of our strategic plan, the commission has set five key priorities that will deliver on this agenda: safeguard policyholders and improve confidence in the insurance industry,  strengthen our supervisory capabilities, improve safety and soundness of our institutions, foster Innovation and sustainability of the insurance industry and enhance overall insurance accessibility and penetration in Nigeria.”

Reiterating the stance of the commission on timely payment of claims, the CFI said insurers should significantly reduce their outstanding claims by the end of the year, a stance he had disclosed during the last insurers committee meeting.

“Unnecessary delays in the settlement of genuine claims will no longer be tolerated. As a commission, we are committed to strictly enforcing the law and taking swift action against any insurer failing to meet their claim obligations. Simply put, if a company cannot honour legitimate claims, it has no place in our industry,” he asserted.

Omosehin urged the directors at the conference to prepare for the Risk-Based Capital regime, saying  “Ensuring adequate capitalisation is no longer optional. We must prioritise robust capitalisation to effectively tap into target markets and navigate current industry realities.

“The commission, in the last one and half years, has successfully examined a few of our institutions using the Risk Based Supervision Approach, even though the exercise has not been fully completed. However, we are using this medium to seek your cooperation as directors of those institutions and demand compliance on issues that have been raised and directed to the various boards for attention.”

On the theme of the conference, ‘Board Performance in the Nigerian Insurance Industry: A GRC Approach,’ the CFI said, “In today’s global business landscape, integrating Governance, Risk, and Compliance principles at the Board level is vital for business success and sustainability.

“It is no longer optional, but an essential ingredient for enhancing decision-making, transparency, accountability, and risk management. Effective GRC ensures that Boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance.”

He added that the key challenges that the insurance industry is currently grappling with include subpar corporate governance practices, poor risk management, and very low compliance culture, thus making the theme of the conference timely.