The National Insurance Commission (NAICOM) has unveiled a comprehensive 10-year Roadmap to deepen the insurance sector and drive economic growth in Nigeria. The strategic vision, spanning from 2024 to 2033, aims to transform the industry through seven key pillars: regulatory transformation, risk-based capital models, insurance promotion and adoption, product diversification, distribution channel optimization, digitalization, talent development, and support for Nigeria’s economic transformation.
This momentous announcement was made by Mr. Olorundare Sunday Thomas, the Commissioner for Insurance, during the prestigious 2023 National Insurance Conference held in Abuja. With the theme “Redefining Safety – Insurance Solutions for Public Buildings and Buildings under Construction,” the conference provided the perfect platform to introduce this groundbreaking plan.
These seven strategic objectives will serve as a compass to guide NAICOM’s transformation efforts over the next decade. As part of this roadmap, NAICOM will also launch the Guidance Note for Insurances of Government Assets and Liabilities, further demonstrating their commitment to the growth and stability of the insurance sector.
Mr. Thomas emphasized the significance of NAICOM’s Strategic Plan 2021–2023 in strengthening the Nigerian insurance sector and ensuring the safety and soundness of its operations. Through the implementation of this plan, NAICOM has successfully enhanced their regulatory tools, improved corporate governance practices, and aligned their supervisory regime with global best practices.
The transformation journey has seen the operationalization of the Business Process Management Solution (BPMS) and the NAICOM Portal, enabling efficient processing of applications from insurance institutions and providing a centralized repository for statistical data. Additionally, NAICOM has prioritized the development of actuarial capacity within the Nigerian insurance industry, producing Certified Actuarial Analysts to bolster the sector’s expertise.
In a remarkable move to expand the insurance supply chain, NAICOM has granted licenses to twelve new insurance companies, revitalizing the market after a decade-long hiatus. This momentous milestone has not been witnessed since the licensing of the last insurance company 10 years ago and the last reinsurance company 32 years ago. The addition of these new players has not only increased the availability of insurance products but has also bolstered the local insurance capacity in Nigeria.
Addressing the COVID-19 pandemic, NAICOM exemplified its commitment to societal welfare by mobilizing the insurance industry to contribute N500 million and provide free life insurance coverage for frontline workers. Furthermore, the Commission has been actively engaging with state governments and security agencies to enforce compulsory insurances, ensuring comprehensive protection for individuals and businesses.
Recognizing the crucial role of education in advancing the insurance sector, NAICOM has extended financial assistance to tertiary institutions in Nigeria. This support has facilitated the education of professionals who will play integral roles in the industry’s future. Projects in five tertiary institutions have been successfully completed and commissioned, with ongoing efforts in seven others.
The insurance industry’s performance between 2014 and 2022 speaks volumes about its impressive growth trajectory. Premium income has witnessed an average annual increase of 13.6%, soaring from N282 billion to an astonishing N726.2 billion. Concurrently, the total assets of the sector have expanded by an average of 12%, soaring from N827.5 billion in 2014 to an awe-inspiring N2.33 trillion in 2022.
Overall, NAICOM’s 10-year Roadmap is poised to revolutionize the insurance sector, an instrumental catalyst for economic growth in Nigeria. By aligning regulatory practices, embracing digitalization, diversifying product offerings, and investing in talent development, NAICOM is spearheading a transformation that will redefine safety and fortify the industry’s pivotal role in Nigeria’s sustainable economic agenda.
