National Budget: Insurance Sector Operators Brainstorm on Survival Strategy

Ebere Nwoji


Insurance sector operators in the country have mapped out survival strategies that must be adopted by the sector to remain afloat in business during the year.

This follows a critical analysis of the 2022 budget, Nigeria’s fiscal and monetary policies for this year as well as their impact on the general economy and Insurance business in particular.

The National Insurance Commission (NAICOM) and the educational arm of the industry represented by the Chartered Insurance Institute of Nigeria (CIIN) at the 2022 Business Outlook Seminar organised by the CIIN, pointed out risk-based capital approach, enhancement of investment in digital capabilities, automation capacity development programmes, specific products development among others as the only survival strategy that will drive the insurance sector to its destiny this year.

This year’s outlook has the theme, “Economic Policies of the Government in 2022: Challenges, Issues and Prospects.”

Speaking on the topic Strategies Aimed at Cushioning the Effects of the COVID-19 on the Operations of the Nigerian Insurance Industry and the Way Forward, the Commissioner for insurance Mr Olorundare Unday Thomas, said NAICOM would ensure increased visibility for the insurance sector this year.
He said the Commission had also continued to implement effective policyholder protection schemes, market development as well as strengthen regulatory oversight and risk management.

“The commission reviewed current policyholders’ protection schemes and improved use of the security fund for settlement of insolvency and distress; improved enforcement of market conduct rules; and monitored degree of customer satisfaction and enhanced insurance awareness by policyholders in Nigeria,” Thomas said.

He said going forward, the insurance operators needed to embrace risk-based capital approach, enhanced investment in digital capabilities and automation, standardisation of reports and capacity development programmes, among others as the way forward to growing the industry.

Earlier in his welcome address, the President/Chairman of Council, CIIN, Dr Muftau Oyegunle, described the Business Outlook forum as an avenue where key players in the insurance industry and financial subsector of the economy converged to review the business environment in the country.

He said through this, the industry draws strategise on the way forward for the year’s operations.
He said the programme examined the national budget, reviewed the thrust of the fiscal and monetary policies of the government and estimated how these would influence the insurance industry, in particular, and the economy in general.

While making his presentation, finance expert, Dr Oladimeji Alo, said there was a huge prospect in the insurance industry that was yet untapped in the country.
According to him, this is one of the reasons why foreign investors are coming into the Nigerian insurance industry.

He said there was need for insurance companies to increase awareness on claims paid by the industry, and attract the public with friendly retail insurance products.
Also the Group Chief Executive Officer, United Capital Plc, Peter Ashade, speaking on the Insurance Perspective of the Theme Paper, implored operators to focus on oil sector stressing that the Petroleum Industry Act would create more opportunities for the insurance industry to harness.
He also urged them to increase their capacity on agricultural insurance pointing out that there were huge opportunities in the sector.