Olusegun Ayo Omosehin, the Commissioner for Insurance at the National Insurance Commission (NAICOM), has called for a comprehensive overhaul of Nigeria’s insurance sector to expand its market reach and boost the nation’s economic development. Speaking at the 2024 Chartered Insurance Institute of Nigeria (CIIN) Insurance Professionals’ Forum, Omosehin, represented by NAICOM’s Deputy Commissioner for Finance and Administration, Ekerete Ola Gam-Ikon, highlighted the urgent need for innovation, regulatory reforms, and stronger corporate governance to elevate the sector’s role in the economy.
The Commissioner outlined a strategic vision driven by the recently launched “Nigerian Insurance Industry 10-Year Transformation Roadmap,” which is designed to guide the sector through necessary reforms. He noted that this framework would increase market penetration, enhance financial soundness, and restore public trust in the industry.
Omosehin stressed the importance of adapting to modern business realities, including technological advancements, economic challenges, and evolving consumer preferences. “Our industry must innovate, develop new products, and leverage technology to remain competitive both locally and globally,” he said.
One of the key initiatives introduced is the establishment of an Innovation-Hub Unit within NAICOM, aimed at fostering a dynamic regulatory environment to embrace technological advancements. This, alongside a regulatory sandbox initiative, is intended to spur industry innovation and drive market expansion.
Omosehin also emphasized the need for financial institutions in the insurance sector to bolster their capital base and adopt risk-based supervision and capital management to remain competitive on a global scale. He pointed out that addressing challenges like inflation, climate change, and shifting consumer behavior is essential for the sector’s future.
“As financial markets evolve globally, adopting robust risk-based supervision practices and maintaining a strong financial base is imperative. The soundness of our industry is critical to its survival and growth,” Omosehin remarked.
The Commissioner further underscored the importance of corporate governance and ethical conduct in rebuilding consumer trust, calling for transparency, fairness, and timely settlement of claims. He argued that such measures are crucial to increasing insurance penetration across Nigeria, which would significantly contribute to both sectoral and national growth.
“Corporate governance is the cornerstone of any successful industry. The quality of decisions made within our institutions will shape their future and their role in contributing to national economic output,” Omosehin stated.
In closing, Omosehin urged collaboration among all stakeholders, including regulators, professionals, and associations, to ensure a unified and resilient approach to transforming the industry. He reaffirmed NAICOM’s commitment to creating an enabling environment for the insurance sector’s growth but called for the collective effort of all players to achieve the industry’s full potential.
With a renewed focus on innovation, transparency, and financial stability, the transformation strategies discussed at the forum aim to position Nigeria’s insurance sector as a key driver of the country’s economic growth.
