As various sectors of the economy prepare the grounds for Federal Government’s N1 trillion economic agenda, operators in the insurance sector have been advised to plan ahead to manage emerging risks in the process and thereafter.

Giving the advice in Lagos, the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, who led discussions at the Insurance Meets Tech 3:0 event in Lagos, called on the operators to address fundamental issues plaguing the sector in a bid to revitalise the industry.

The annual Insurance Meets Tech organised by Modion Communications provides a platform for the convergence of insurance and technology experts to brainstorm on issues aimed at deepening penetration in Nigeria.

Omosehin, who spoke on “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration” listed the fundamental issues the industry must address to include low insurance penetration; lack of public trust; market fragmentation; regulatory reforms and digital transformation and adaptation.

Represented at the occasion by NAICOM’s Head of Lagos Control Office, Dr. Julius Odidi, he said for the industry to achieve the objective of revitalising the insurance industry to risk-manage Nigeria’s economic aspiration of the present administration, the industry operators must of necessity address the abovestated fundamental issues.

The NAICOM boss also emphasised the need for financial soundness and stability of insurance institutions, noting that a strong financial base is key to the success of the industry. While commending the organisers for choosing the theme, he said:

“Essentially, revitalising the Nigerian insurance industry to risk-manage Nigeria’s N1 trillion economy speaks to the insurance industry’s readiness and preparedness to de-risk the activities that is projected to galvanise productivity, Innovations, economic growth and development.

“With the rapid changes in technology and economic/ business environment, this discourse is not just timely but also topical to reawaken the need for our dear industry to rise up to the current realities of what is expected of us as an industry.”

For the industry to remain relevant in the unfolding economic situation in Nigeria, according to Omosehin, operators must also be able to address current realities of economic instability, climate change, rapid technological advancement, changing behaviour of consumers, soaring inflation and forex instability on global financial markets disrupting ways financial services are carried out.

The way to do this, he said, is for the industry operators to imbibe technology in to have a one-stop shop for insurance products and services, noting Innovation and sustainability as some of the major emerging issues today.

According to him, “the insurance sector must embrace innovation to meet up with the rapid market changes, changes in consumers’ preferences, tastes and lifestyle. We must develop products that meet the demands of our market as innovation has taken the driving force in the financial services sector.

More critical to the theme is the issue of financial soundness and stability of insurance institutions, as a strong financial base is key to our success as an industry.

Having sufficient capital that is commensurate to the Risk of an insurer has become inevitable if the industry is to meet up with up with the consequential effect of a growing economy, managing a one trillion economy and compete with our counterparts across the globe in management of risks.

“As I recently mentioned in my address to professionals in the industry, to achieve the aforementioned the insurance industry must develop a wide range of new skill sets and orientation, attract and retain talents, diversify our product spectrum, improve our adaptability and agility, improve on transparency and openness, and importantly, invest in technology.

These and many more factors must be considered if we must de-risk the economy.” Highlighting what the Commission has done since his assumption of duties as CEO to prepare the industry for it’s task ahead, Mr Omosehin said:

“First, upon the assumption of office of the current Management, we recognised the urgent need to strategically reposition the insurance industry and place high priority in certain areas that will potentially stimulate the transformation agenda of the insurance sector.

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