The MD/CEO, Financial Institutions Training Centre FITC, Chizor Malize has said that organisational strategy must be resilient to external shocks and adaptable to changing circumstances.
Malize disclosed this at the departmental retreat for the eight directorates of commission which were delivered virtually and anchored by FITC.
Malize listed key trends reshaping the insurance industry in Nigeria that should be critical considerations for the insurance institutions in planning their strategy beyond 2021. According to her, the key trends dominating the insurance industry include the rise of Insurtech, hybrid distribution channels, compliance, and regulatory reforms as well as talent and demographic shifts.
Also in the list are remote working, mergers, and acquisitions, accelerated technology application, digital innovation and digitization, skills and talent shifts, innovative product development, changing customer preferences, virtual customer engagement, artificial intelligence, automation for claims processing as well as management.
These trends, Malize added, will not only reshape the insurance industry but determine industry leaders going forward.
She added that the COVID pandemic has ramped up the urgency of new competitive strategic imperatives and FITC has supported several financial and other institutions in either revising their strategic imperatives, developing these initiatives, charting out implementation road map and supporting execution.
She said, “A lot has changed in the Insurance sector, the pandemic has impacted travel insurance for instance, due to restrictions in movement especially for customers with additional covers against travel disruptions and in credit insurance as default rates rise. Besides, profitability of insurers could decline due to fall in yields on fixed income instruments which constitute the bulk of insurers’ income.”
According to the Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Olorundare Sunday Thomas, the strategy retreat reflected the transformational aspiration of the management of the Commission and the need to proactively respond to the evolving socio-economic and cultural milieu.
Speaking further on the retreat, Mr. Thomas shared that the revisiting of the Commission’s strategy is aimed at honing in on how the Commission intends to overcome some of the challenges being faced in the country that have negatively impacted on the activities and initiatives of the Commission such as the COVID 19 pandemic, the End SARS protests, the rise in kidnappings, armed banditry, communal tensions and conflicts, hence shaping how the industry conducts its business going forward, and the corresponding regulatory responses.
The Commissioner further reiterated that the strategic plans of the commission are anchored on effective and efficient service delivery, safe, sound, and stable insurance sector, adequate protection of policyholders and public interest, trust, and confidence in the insurance sector as well as an innovative and developed insurance market. “This retreat affords the Commission the opportunity, with the help of FITC, the foremost consulting and advisory firm, to plan how the organisation intends to overcome these challenges,” Thomas said.