Insurance Practitioners Need Innovative Products To Breakeven- NAICOM

Yemisi Izuora

The National Insurance Commission, NAICOM, has challenged insurance practitioners to think on how to attract public interest with innovative products with seamless technology to enhance service delivery and growth.

Commissioner for Insurance Mr Olorundare Sunday Thomas told practitioners at the

2022 Chief Executive Officers’ retreat of the Nigerian Council of Registered Insurance Brokers NCRIB, to grow insurance and make it acceptable to the public by changing the narrative and embrace transparency.

More importantly, they should be engaging, producing innovative products; new sources of revenue; improved claims service; use of technology for inclusive insurance; diversification of business base and improved governance.

Thomas said, The imperative for a sound personal mastery and self-leadership cannot be over-emphasised as companies globally are under pressure from multiple stakeholders to adopt sustainable business practices in which the insurance broking arm is not an exception.

“It is imperative to reiterate that the road to implementing and improving a business strategy for sustainability will differ for various business entities, but with ingenuity, perseverance and cooperation, they can achieve the desired result. As an arm of the insurance sector, your collective resolve to ensure business sustainability and collective growth and development with other arms of the industry will determine how far we can all go in achieving industry wide stability. The National Insurance Commission is committed to continuous development and growth of the Nigerian insurance sector thus, always prepared to collaborate with all stakeholders in promoting and entrenching good business strategies for sustainability of the Nigerian Insurance Industry. Some of the initiatives of the Commission include the following: reaching out to the states; reaching out to Agencies of government; enhancing our technology infrastructure; bringing the Nigerian insurance industry into the mainstream of continental and on our way to global relevance”.

He advised Chief Executive Officers, CEO’s of the insurance broking profession to continually explore ways with other stakeholders to facilitate economic prosperity; ensure environmental sustainability and social development to drive long term sustainable growth in the Nigerian insurance industry for the overall lasting benefits to the society, pertinent to our national and institutional growth.

The insurance industry as a business, he observed is not outside of the same pressures as businesses in other industry/sectors adding that the impact of unsustainable trends can create significant pressures on the industry’s profitability in the short and long run.

These are inadequate brokerage services to policyholders; poor claims handling service; price based competition among players; technology adverse; lack of innovative products that meet customer’s needs; concentration of operations in few locations; focus is on big ticket businesses like Oil and Gas, Aviation etc thus need for diversification; poor risk governance and poor distribution channels and skill.

“As CEOs, you need to be mindful of the need to entrench a sound “Business Strategy for Sustainability” as many insurance businesses claims, but without a realistic and effective sustainable business strategy. Suffice it to say that such businesses are unlikely to deliver the gains that more sustainable performance could bring through the determination of their activities, behaviour, products, services and a detailed understanding of the environmental and social context in which they operate” he said.

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