LAGOS – The National Insurance Commission (NAICOM), has warned insurance professionals against unethical practices that would further smear the image of the industry rather they should work to improve public trust and confidence in the sector.
Segun Omosehin, the Commissioner for Insurance and Chief Executive Officer at NAICOM, handed down the warning on the 12th of September at the 21st Professional Forum organised by the Chartered Insurance Institute of Nigeria (CIIN) in Abeokuta, Ogun State, South West Nigeria.
The theme for this year’s forum was tagged: “The insurance Industry: Transformation Strategies towards Expanding Market Reach.”
According to him, for the underwriting sector to meet the target of market expansion and growth, the sector must cultivate a wide range of skill sets and orientation.
The CFI added that the attraction and retention of talents, diversification of products spectrum, improvement on adaptability and agility, transparency and openness, should form the key factors in achieving the industry-wide dream.
He urged the operators to invest in technology, improve trust and confidence in insurance, ensure adequate capital and expertise that would provide them with the edge to compete favourably with other sectors of the economy.
“In order to meet the target of market expansion and growth, the insurance industry must develop a wide range of new skill sets and orientation, attract and retain talents, diversify our products spectrum, improve our adaptability and agility, improve on transparency and openness, invest in technology, improve trust and confidence in insurance, have institutions that compete favourably with other sectors in terms of liquidity, capitalisation and expertise. These and many more factors are to be considered if we must see the insurance industry of our dreams.” The CFI stressed.
He further asserted that as an industry enthusiastic about opening up insurance market in the country and deepening penetration, professionalism and ethics are key saying: “I want to urge us to look inward and re-appraise our professional and business ethics and conduct. As professionals, we must conduct our business with utmost integrity and in manners that does not bring disrepute to the insurance profession.”
Advertisement
He maintained that the Commission is prioritising issue of accessibility to insurance products across the country and is keen about increasing penetration as he emphasized that the conduct of insurance practitioners in building and maintaining trust of consumers is our primary responsibility, expressing optimism that that will galvanise growth and deepen penetration in the country.
Omosehin, emphasised the need for adoption of risk-based supervision and risk-based capital saying they have become inevitable if the industry should compete with its counterparts across the globe and remain relevant in the management of risks of our existing and potential customers.
“Dear professionals, strong financial base is key to our success as an industry. As a Commission, we have resolved to pursue, as a priority, the safety and soundness of our regulated entities. Remember the words of Benjamin Franklin: “one rotten apple, spoils the barrel”.
We are all witnesses to what this has caused us as an industry and are now more determined to rid ourselves of that cankerworm.
Every other strategy we discussed above depends solely on a strong corporate governance culture in our entities.
The Commission will always emphasize the importance of strong Corporate Governance practices in the survival of business entities.
The quality of the strategies and decisions made on behalf of those entities would determine how far they can go and how strategically positioned they will be in the sector’s contribution to national output”, he said.
He implored the cooperation and support of all stakeholders as an integral factor to the success of the transformation strategies to be adopted for the growth and development of the industry calling all players, professionals, associations to come to the table, bringing their expertise, to maximising their differences and building yet again a stronger and better insurance industry.
