Mr. Olorundare Sunday Thomas, the Commissioner for Insurance/Chief Executive Officer of NAICOM, has revealed the insurance industry’s strategic vision for the coming decade (2024-2033).
This vision is built upon seven strategic pillars that encompass regulatory transformation, risk-based capital models, insurance promotion and adoption, product diversification, distribution channel optimization, digitalization, talent development, and support for Nigeria’s economic transformation.
Mr. Thomas announced this plan on Monday during the 2023 National Insurance Conference in Abuja, with the theme “Redefining Safety – Insurance Solutions for Public Buildings and Buildings under Construction.
These seven strategic objectives will guide the Commission’s transformation efforts over the next ten years. Additionally, NAICOM will launch the Guidance Note for Insurances of Government Assets and Liabilities.
Regarding the insurance industry’s performance between 2014 and 2022, Thomas noted significant growth, with premium income increasing at an average rate of 13.6%, reaching N726.2 billion from N282 billion.
The total assets of the sector also expanded by an average of 12%, rising from N827.5 billion in 2014 to N2.33 trillion in 2022.
He emphasized several flagship projects implemented as part of the medium-term NAICOM Strategic Plan 2021–2023:
- Enhancing the safety and soundness of the Nigerian insurance sector through improved prudential regulatory tools and corporate governance practices.
- Transitioning the supervisory regime to align with global best practices, improving distress management and market restructuring.
- Implementing Project E-Regulation through the operationalization of Business Process Management Solution and NAICOM Portal.
- Developing an actuarial capacity program for the Nigerian insurance industry.
- Licensing twelve new insurance companies and expanding distribution channels.
Additionally, the Commission mobilized the insurance industry to contribute N500 million and provide free life insurance cover for frontline workers managing the COVID-19 pandemic.
It has been working closely with state governments and security agencies to enforce compulsory insurance and has provided financial assistance to tertiary institutions for education in the insurance sector.
Thomas acknowledged several challenges affecting insurance industry growth, including talent gaps, low public awareness, affordability issues, trust and confidence deficits, cultural and religious biases, inadequate distribution channels, and low insurance enforcement.
The National Insurance Conference is one of NAICOM’s initiatives to incentivize law enforcement agencies, state governments, professional bodies, and other stakeholders while raising public awareness of insurance’s role in redefining safety in Nigeria.”
