The Commissioner for Insurance/Chief Executive Officer of, the National Insurance Commission (NAICOM), Olusegun Omosehin, has called for a vast adoption of Artificial Intelligence to actualise the N1tn dollar economy target of the Bola Tinubu administration.
Speaking at the Insurance Meets Tech (IMT) summit themed “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration,” Omosehin said fostering innovative business solutions that address pressing economic and social issues in Nigeria’s insurance sector was pertinent.
Omosehin, at the event in Lagos State on Friday, said In achieving this objective of revitalising the insurance industry, it was necessary to address “Low Insurance Penetration; Lack of public trust; Market Fragmentation; Regulatory Reforms and Digital Transformation and adaptation” issues plaguing the sector.
The NAICOM boss noted that COVID-19 threatened global safety and tested the abilities, resilience and preparedness of nations globally to deal with the unexpected outbreak.
According to him, the pandemic highlighted the need for digitalization.
However, he said the insurance sector was exempted, and while lockdowns negatively impacted traditional distribution channels, insurers were encouraged to develop digital offerings.
He said, “This has come to show that investing in technology, online platforms, and mobile apps can improve customer experience and accessibility.
“Essentially, revitalizing the Nigerian insurance industry to risk-manage Nigeria’s One Trillion Dollar Economy speaks to the insurance industry’s readiness and preparedness to de-risk the activities that are projected to galvanize productivity, Innovations, economic growth and development.
“As a Commission, we have set out 5 priority areas for immediate implementation which include; safeguarding policyholders and improving confidence in the industry; strengthening our supervisory capabilities and organizational effectiveness; Improving safety and soundness of the Nigerian insurance industry; fostering innovation and sustainability of the Nigerian insurance industry, and enhancing overall insurance accessibility and penetration in Nigeria.
“In furtherance of the need to address the fundamental question of how to attain our intended goals, we are resolved to place high priority on the settlement of genuine claims as that is the fundamental reason of our existence as an industry.
“One of the enshrined and fundamental responsibilities of the Commission as a regulator is the protection of policyholders, hence the Commission prioritized prompt settlement of all genuine claims, fair treatment of policyholders and utmost transparency as some of the ways to boost insurance industry’s image and support economic growth”.
The post-COVID-19 era witnessed a paradigm shift in business operations, driven by unprecedented disruptions that necessitated innovative adjustments to ensure continuity and resilience, said Omosehin.
He added, “This has led to the widespread adoption of AI and other emerging technologies, catalyzing fierce innovative competition and impacts, product development, service delivery, distribution networks and operations”.
As a result, organisations are leveraging technology to drive growth, improve efficiency, and stay competitive in an increasingly complex landscape as it was worthy to state that the increasing momentum of Insurtech development poses both opportunities and challenges for established industry players, he reiterated.
To remain competitive, the NAICOM boss was quoted saying that “it is crucial that we proactively incorporate innovative Insurtech solutionstions that will change our conventional business models, thereby safeguarding our continued relevance in addressing customer needs and market position”.
This reality, the Commission had since understood, led to the issuing of the Regulatory Sandbox Guideline to accommodate the testing and refinement of innovative products.
He highlighted the current realities of economic instability, climate change, rapid technological advancement, changing behaviour of consumers, soaring inflation and forex instability on global financial markets as trends that have disrupted the ways financial services are carried out.
The insurance sector must embrace innovation to meet up with the rapid market changes, changes in consumers’ preferences, tastes and lifestyles Omosehin said adding that Nigeria must develop products that meet the demands of our market as innovation has taken the driving force in the financial services sector.