The Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, has raised concerns over the impact of inflation on Nigeria’s insurance industry. Speaking at the Insurance Meet Tech (IMT) 2024 conference in Lagos, Omosehin, represented by Mr. Julius Odidi, Head of NAICOM Lagos Control Office, described inflation as a significant challenge for both insurers and policyholders.
Omosehin emphasized that inflationary pressures are increasing the cost of claims, making it difficult for insurance companies to maintain profitability. He urged insurers to adopt effective strategies to mitigate these challenges, such as managing their investment portfolios, adjusting pricing strategies, and maintaining sufficient reserves.
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“Navigating the current macroeconomic realities is essential for the revitalization of the insurance industry,” Omosehin stated.
The commissioner further highlighted NAICOM’s commitment to the prompt settlement of genuine claims, fair treatment of policyholders, and transparency within the sector. He reiterated that claims settlement remains a priority for the commission as it is central to the insurance industry’s purpose.
Omosehin also stressed the need for insurers to embrace digitalization. He noted that modernizing processes, improving customer experiences through digital channels, and investing in technology are vital steps to attract tech-savvy customers and streamline operations.
“Offering online policy purchases, claims processing, and enhanced customer service will help insurers adapt to changing consumer preferences,” he added.
In a related development, Omosehin addressed a recent visit by a delegation from the Nigerian Council of Registered Insurance Brokers (NCRIB), led by its president, Babatunde Oguntade, to NAICOM. He noted that over 70% of annual insurance business is driven by brokers, emphasizing their critical role in the insurance ecosystem.
NAICOM expressed its intention to strengthen the regulatory framework for brokers to ensure they can effectively discharge their self-regulatory functions. Omosehin stated that the commission aims to leverage the brokers’ position to drive growth initiatives within the industry.
He added that the insurance sector has the potential to contribute more significantly to Nigeria’s Gross Domestic Product (GDP) and play a larger role in the financial ecosystem. To meet the evolving needs of the sector, NAICOM has restructured into new directorates focused on effective regulation.
NCRIB President Oguntade praised NAICOM’s new leadership and expressed optimism about future collaboration between brokers and the commission.
This development marks NAICOM’s continued efforts to address industry challenges while promoting growth and modernization in Nigeria’s insurance sector.
