By Rosemary Iwunze

The Commissioner for Insurance, Mr. Olusegun Omosehin, has said that challenges such as low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, as well as digital transformation and adaptation must be addressed to revitalize the insurance industry and position it to risk-manage Nigeria’s one-trillion-dollar economy aspiration.

Speaking in a Keynote address at the Insurance Meets Tech, IMT, 2024, Conference in Lagos, Omosehin noted that the Commission plays a vital role in fostering innovative business solutions that address pressing economic and social issues in Nigeria’s insurance sector.

He said: “This commitment extends to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry. In achieving this objective of revitalising the insurance industry, we must of necessity address the following fundamental issues plaguing the sector, which include among others; low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, as well as digital transformation and adaptation.”

According to him revitalizing the Nigerian insurance industry to risk-manage Nigeria’s One Trillion Dollar Economy literally speaks to the insurance industry’s readiness and preparedness to de-risk the activities that is projected to galvanize productivity, innovations, economic growth and development.

Omosehin stated: “It is crucial that we proactively incorporate innovative Insurtech solutions that will change our conventional business models, thereby safeguarding our continued relevance in addressing customer needs and market position. The Commission had since understood this reality and issued the Regulatory Sandbox Guideline to accommodate the testing and refinement of innovative products. Consequently, we established a Directorate for Innovation and Regulation, recognizing that change requires new approaches.

“The Commission has also completed a draft Insurtech Operation Guidelines which shall be released very soon. 

The current realities of economic instability, climate change, rapid technological advancement, changing behaviour of consumers, soaring inflation and forex instability on global financial markets have disrupted ways financial services are carried out. Hence, we must imbibe technology in order for us to have a one-stop shop for insurance products and services. Innovation and sustainability are some of the major emerging issues today.

“The insurance sector must embrace innovation to meet up with the rapid market changes, changes in consumers’ preferences, tastes and lifestyle. We must develop products that meets the demands of our market as innovation have taken the driving force in the financial services sector. More critical to the theme is the issue of financial soundness and stability of insurance institutions, as a strong financial base is key to our success as an industry. Having sufficient capital that is commensurate to the risk of an insurer has become inevitable if the industry is to meet up with up with the consequential effect of a growing economy, managing a one trillion economy and compete with our counterparts across the globe in management of risks.

“As I recently mentioned in my address to professionals in the industry, to achieve the aforementioned the insurance industry must develop a wide range of new skill sets and orientation, attract and retain talents, diversify our products spectrum, improve our adaptability and agility, improve on transparency and openness, and importantly, invest in technology. These and many more factors are to be considered if we must de-risk the economy’’.