At the recent Insurance Meets Tech (IMT) 2024 Conference in Lagos, the Commissioner for Insurance, Mr. Olusegun Omosehin, highlighted the pressing challenges facing Nigeria’s insurance industry and emphasized the need for strategic reforms to support the nation’s ambition of achieving a one-trillion-dollar economy. He identified issues such as low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, and the necessity for digital transformation as key areas that must be addressed to revitalize the sector.
In his keynote address, Omosehin stated, “This commitment extends to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry.” He stressed that revitalizing the insurance industry is essential for effectively managing risks associated with Nigeria’s economic aspirations.
According to Omosehin, enhancing the insurance industry’s capacity to mitigate risks is crucial for boosting productivity, innovation, and economic growth. He advocated for the proactive incorporation of innovative Insurtech solutions to modernize conventional business models, ensuring that the sector remains relevant to evolving customer needs.
To facilitate this transformation, the Commission has introduced various initiatives, including the Regulatory Sandbox Guideline, which allows for the testing and refinement of innovative insurance products. Furthermore, a draft of the Insurtech Operation Guidelines is expected to be released soon.
Omosehin also addressed the broader economic challenges, including climate change, rapid technological advancements, and fluctuating financial markets, which have impacted the delivery of financial services. He asserted the importance of adopting technology to create a comprehensive platform for insurance products and services.
“To achieve these objectives, the insurance industry must develop a wide range of new skill sets and orientations, attract and retain talent, diversify product offerings, enhance adaptability, improve transparency, and invest in technology,” he urged.
He concluded that achieving financial soundness and stability within insurance institutions is paramount for the sector’s success. This involves maintaining sufficient capital to match the risks faced by insurers, which is vital for competing globally in risk management and contributing to Nigeria’s economic growth. Omosehin’s remarks reflect a comprehensive approach to tackling the challenges of the insurance sector and positioning it as a key player in the nation’s economic landscape.