The National Insurance Commission, made insurance directors ride with it through undulating terrain of insurance operations, and making it clear that bumpy operations need quick intervention and sustained action to create a market with even layout.
Marshalling the downticks at this year’s insurance directors conference, Commissioner for Insurance, Mr. O S Thomas, said the theme, “Insurance Industry Post Pandemic: The Pursuit For Survival And Growth,” demanded that the next phase for the directors is to make policies and strategies that will encourage survival and growth of the institutions post pandemic.
Thomas remarked that there were hazard areas that required the attention of not only the individual company governing structure, but also the Commission. He observed that the position of strength in human and financial capital has repeatedly diminished, and that needed to be strengthened “for effective participation in big ticket risks.”
Like the roll of motion pictures, he shows the directors at the industry report meeting, how big ticket risks are trending, “…the gains of domestication policy of the government as enshrined in the Nigerian Content Development Act 2010 is gradually loosing its meaning for the insurance sector. More businesses especially in the oil and gas and the aviation sectors are now being re insured abroad. Of more concern is the declining participation of life companies in the annuity business which is emerging for our industry.”
Rather than bolt, Thomas said the industry should get back on track, noting that as a pivotal sector it “can impose itself on the economy through the control of funds for national development.”
NAICOM boss was also firm while informing the attendees that the huge backlog of claims should no longer be associated with insurance companies. According to him, “the commission is profiling companies with huge unsettled claims for necessary regulatory action.” However, he said companies that are responsive to the plight of their clients in “prompt settlement of claims are encouraged to sustain the good business conduct.”
Also rated a must have by the CFI, is the digitalisation of processes, procedures and systems in order to make companies operations seamless and real time. He said the Commission is investing heavily in automating its processes and challenged the operators to do nothing less.
Underscoring the regulator’s focus on this and the length it has covered to establish seamless regulation, the Commission explained its policy roll out on this, noting that this should make the market operators follow after. Thomas, intending to push up-to-date effort on this and earn operators support said: “An industry information technology guideline has been issued for the operators and the Commission requires your support and cooperation for effective compliance.”