The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM)Sunday Thomas, has called on the insurance industry to take interest in pursuing, development of green products, improve operations geared towards energy efficiency, Investment Strategies Leveraging Technologies and Insuring people with disability.
The NAICOM boss also called for improved Corporate Social Responsibilities (CSR) and Complying with Professional Standards.
Thomas, who stated this at the 2022 Insurance Directors Conference in Lagos, said that the Commission has already evolved certain initiatives in the area of sustainability, Climate Change: Flood and Disaster Management, Monitoring Population Growth- Annuities Insurance Longevity, Green Technology- Work on Electronic Submission of regulatory returns and Renewal of Licenses etc and Investment and Strategy Support to Ethical Investment.
Others are Green Products- Takaful & Microinsurance, Implementation of Policies to encourage Insuring Crops and Weather Base Index, Treating Customers fairly- Prompt Claims payment amongst others, Synergy with development partners i.e FSD Africa on BimaLab Project.
According to him, The insurance industry globally is continuously undergoing profound changes; we must admit that the disruption we are faced with is not just digital but also harsh market conditions, demanding customers, innovative new market entrants and regulations which are also some of the forces transforming the insurance industry.
He said, however, wherever there is a challenge, there is an opportunity and all the sources of disruptions can be harnessed to become a source of growth for insurers.
“While no one can predict exactly what insurance might look like in a decade, insurers can take several steps now to prepare for these changes.” he advised .
He said, “Each of the four Principles for Sustainable Insurance has actions in the areas of company strategy, risk management and underwriting, product and service development, claims management, sales and marketing, investment management, clients and suppliers, insurers, reinsurers and intermediaries, government regulators, policymakers and stakeholders.
“It is imperative that as an industry, we take precautionary measures by raising awareness within ourselves on the potential sustainability impacts of business transactions, and integrating these considerations into pre-emptive and holistic risk management processes.
“We want to further encourage insurance companies to reduce their environmental footprint through their internal operations and business activities.
“I want to borrow the words of my dear sister, Dr. Yeside Oyetayo, Rector of the College of Insurance and Financial Management when she said and I quote “Insurance is the industry that ensures the survival of other industries, it has always risen to the risks associated with human challenges in the past, and climate risks require that insurers must be part of the solution.”
He urged the industry to take deliberate steps at reconciling long-term with short-term goals, global expansion with local objectives, workplace and community issues; all of which must be united, while not losing sight of the basic goals of profitable operations and increasing shareholder value.
“Consequently, in order to facilitate economic prosperity, ensure environmental sustainability and social development, we must join forces with identified stakeholders to drive long term sustainable growth in the insurance sector for lasting benefits to all stakeholders,” he said.
