The National Insurance Commission (NAICOM) on Wednesday highlighted 10 steps that needed to be implemented to move the insurance sector forward.
The Commissioner For Insurance, Mr Sunday Thomas, listed them while delivering a paper at the 2022 Business Outlook organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.
The title of his paper is “Strategies Aimed at Cushioning the Effects of the Covid-19 on the Operations of the Nigerian Insurance Industry and the way Forward.”
Thomas mentioned the first of the steps as risk-based capital approach, which the commission and the Nigerian Insurers Association (NIA) are set to jointly accomplish.
Others are, standardisation of reports, enhanced investment in digital capabilities and automation, entrenched effective asset liability management, capacity development programmes- actuarial, competency framework and having in place reinforced recovery and resolution plan.
He also listed the use of modelling for risk assessment and stress testing, context specific products such as loss of job insurance products, and cyber insurance policy by trustees of customers data .
According to him, the establishment of the College of Insurance Supervisors of the West African Monetary Zone (CISWAMZ) has also become more compelling for regional integration .
Thomas noted that the COVID -19 pandemic had opened a lot of doors that ordinarily, the industry would not think was possible .
The Commissioner said that the insurance industry had become more visible since the pandemic, earning the commendation of President Muhammadu Buhari for supporting the efforts to contain the COVID-19.
He, however, said it needed to do more in its role in reducing vulnerabilities in all risks.
The dependence on the digital capacity, according to him, has nurtured quickly the need to reinforce cyber protection to tame increased exposure of companies remotely working to cyber risks.
He said that there was also the need for issuance of ICT standards for the industry.
Thomas said the Commission had a stake in the stability of the industry and had not lost focus of this, leading to some policies and programmes wearing relaxed tags.
“This is seen in the extension of the recapitalisation exercise, transition to risk-based supervisory regime, postponement of IFRS 17 commencement date, and regulatory forbearance.”
He noted that the Commission was not oblivious of its responsibility to strengthen regulatory oversight and risk management, and also implement effective policyholder protection schemes.
This, according to him, involves improved enforcement of market conduct rules, with the need to monitor degree of customer satisfaction and enhance insurance education.
He said that the regulatory body had scaled up its project e-Regulation and moved up more steps market development with the current collaborative model international and local stakeholders.
