By Cynthia Ezekwe
The National Insurance Commission (NAICOM) has called on insurance operators to hugely invest in technology and upscale business models in order to compete and be able to meet the expectation of clients.
Sunday Thomas, the commissioner for Insurance/CEO, NAICOM, made this known while speaking at the Nigerian Council of Registered Insurance Brokers (NCRIB) 2023 retreat in Ogere, Ogun State, charging every arm of the sector to accept changes that come with modernisation and technological advancement for the industry to remain sustainable, while stressing on the need to expand distribution channels for insurance products beyond the traditional norms.
Thomas noted that it is imperative to support the commission’s efforts to bring emergent online platforms for distribution or provision of insurance under the NAICOM’s regulatory purview in the interest of the Nigerian insurance industry.
“It is our humble view that strong and sound firms are better able to invest in the much needed IT solutions to ease operational pain-points within the industry hence the need to dissuade portfolio broking firms,” he said.
He also pointed out that insurance brokers must begin to re-examine the insurance broking value proposition beyond the traditional perception, as they have important roles to play in the collective aspiration to reposition the industry.
“We must upscale our business models to attract individuals who are leaning towards creating sinking funds, he advised,”Thomas advised.
He further urged underwriters and brokers to optimise their management expenses in order to avoid the pressure of an off-peak period, while not forgetting to prepare for the possibility of cost-push inflation.
“I must reiterate that regulatory changes are continuous given the changing dynamics of the operational market environment. We must therefore avoid the obvious temptation to resist innovative regulatory and supervisory initiatives intended to make the industry more relevant to the economy,” he added.
