Insurance professionals have advocated that new skills from operators would be key to tackle new and emerging risks going forward.
The experts, who spoke at the ongoing 2023 Insurance Professionals’ Forum in Abeokuta, Ogun State, yesterday, noted that, to navigate this ‘new normal’ that has come to stay, insurance industry must develop a wide range of new skill sets and orientation which enables adaptability and agility.
Delivering his keynote address at the event, the commissioner for insurance/CEO, the National Insurance Commission (NAICOM), Mr. Olorundare Sunday Thomas, urged the industry to adopt strategic foresight, continuous learning and development as well as effective communication and transparency, all of which, he said, require adjusting operating models and workflow processes in doing business today.
Disclosing that there has been an increased awareness of climate-related risks and their potentially devastating effects on society, he added that this has increased focus on the significance of Environmental, Social and Governance(ESG) factors in insurers’ underwriting business as well as in investment portfolios.
To him, “insurers in Nigeria control assets, many of which are held over the long term, subject the insurance sector to significant ESG risk. Regulatory requirements to enhance ESG disclosures and considerations, are gaining global popularity and key stakeholders, including major institutional investors, increasingly desirous of greater ESG accountability from insurers.”
To successfully compete in a new Volatility, Uncertainty, Complexity, and Ambiguity(VUCA) environment, he charged insurers to develop a new set of tools and methods and apply them swiftly and thoroughly.
He listed some of the most essential taxonomies to include; strategic savviness (vision), artificial intelligence (understanding and clarity) and organizational agility (agility and virtual).
In recognition of the realities of today’s changing world and the increasing utilisation of e-platforms as necessitated by recent changes in the world, especially, the outbreak of COVID-19, he said, the commission had implemented a lot of technological transformation programmes such as the deployment of Business Process Management(BPM) Solution and the NAICOM Portal Projects which were concluded in 2021 and went live in 2022.
The BPM, he stressed, is currently being used to process relevant applications while the NAICOM Portal remains the focal point for generation of unique policy identification numbers for all policies as well as repository for statistical data including verification of insurance policies issued in Nigeria.
Saying the adoption of risk based approach to supervision by the commission is another giant stride in the area of long time plan for business continuity and sustainability in the
sector, he added that, the next phase of the commission’s quest for a safe, strong and stable insurance sector in Nigeria is the implementation of a Risk-Based Capital for the sector, which, in turn, will boost trust and confidence in the sector.
“We must also not ignore issues relating to governance as it played a significant role in the long term survival of business entities. We have seen many big business entities collapse due to poor governance structure,” he said.
While reiterating the compelling need for a more collaborative disposition of operators in the industry to strategic initiatives of the commission designed to reposition the industry, he stressed that,”it is only in an environment of harmony and cooperation that the Nigerian insurance industry can collectively be focused on resolving the problems that confront this industry.”
Earlier, the president, Chartered Insurance Institute of Nigeria (CIIN), Mr. Edwin Igbiti, while speaking on the theme of the conference, which is; ‘Sustainability Of The Insurance Industry In The VUCA Environment,’ noted that, in today’s rapidly changing world, the insurance industry is faced with unique challenges stemming from the volatility, uncertainty, complexity, and ambiguity (VUCA) that characterises the environment.
As professionals in this field, he said: “it is crucial that we come together to address these challenges and explore innovative solutions that will ensure the sustainability of our businesses.”
This conference, he stressed, provides the perfect platform to exchange knowledge, engage in insightful discussions, and learn from the experiences and strategies of industry experts.
“Throughout the conference, we will delve into topics such as adaptive strategies for mitigating risks in the VUCA environment, leveraging technological advancements to enhance operational efficiency and customer experience, and developing sustainable insurance products to meet the evolving needs of consumers,” he pointed out.
Believing the conference will serve as a catalyst for innovation and collaboration within the insurance industry, he urged stakeholders to harness the power of collective wisdom and expertise to navigate the VUCA environment and ensure a sustainable future for their respective businesses.
Declaring the conference opened, the Alake of Egbaland, Oba Adedotun Aremu Gbadebo, who was represented by the Asoju-Oba of Egbaland, Chief Jonathan Oluwole Odekunle, urged insurance industry to live up to expectation of the insuring public, while giving his royal blessings to the occasion.
He promised the insurance industry continuous support of the Royal Family in the midst of risks that needs to be mitigated through insurance.
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