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General News of Monday, 6 June 2022


Experts hinges future of Insurance sector on sustainable practice

Insurance sector operators have stated that the future of the sector revolves around sustainable insurance practice.

The operators who stated this at the maiden edition of a discourse tagged, “Sustainable Insurance-Issues and Trends,” agreed that providing the proper tools and approach to managing the global sustainable relatable risks, which are environmental, social and governance (ESG) are crucial to the survival of the industry.

Speaking from regulator’s perspective, the Head IT Department, National Insurance Commission (NAICOM), Mr. Abiodun Aribike, disclosed that the insurance regulator; NAICOM was using Information Technology to drive sustainable insurance in Nigeria.

Aribike stated that the Commission in partnership with the Financial Sector Deeping Africa (FSD) recently launched the Risk, Resilience and Regulatory Laboratory (R3Lab) in Lagos to ensure achievement of its purpose.

He added that the initiative was aimed at mitigating the impact of specific challenges bedeviling the insurance regulatory environment in Nigeria as well as exploring ways in which collaboration, technology and insurance supervisory capacity building could improve the regulatory effectiveness of Africa’s insurance industry.

Also speaking the Head, Retail Solutions, Axa Mansard, Mrs Rashidat Adebisi, emphasised the need for operators to start working on sustainability of the sector’s future by shifting focus from investing in just oil revenues to gas, as gas is more sustainable.

“The world is currently shifting away from oil. We need to start investing in gas, which is more sustainable and greener. We need to take actions on sustainable goals as this helps the environment to be safe. I urge everyone here to start and lead the sustainable goals conversations in their various companies because sustainability is key”, she expressed.

Speaking from the broker’s perspective, Saheed Egbeyemi of Hogg Robinson Nigeria Limited, noted that opportunities abound for the sector to tap into and flourish but said the issues of rate cutting and unhealthy competition have to be addressed.

Former President of the Institute of Loss Adjusters of Nigeria (ILAN), Mr. Ralph Opara, representing the loss adjusters, said ILAN was doing a lot to ensure sustainability because the arm remains the life wire of the insurance value chain.

Rector, College of Insurance and Financial Management (CIFM), Dr. (Mrs.) Yeside Oyetayo, said ESG risks are now a criteria to determining a company that is sustainable hence, training and programmes on sustainable risks needed to be factored into the insurance industry-academic curriculum.

She also noted that the industry needed to collaborate with other sectors.

During the panel discussions, Chairman of the occasion, Mr Olusegun Omosehin, emphasised that collaborations and innovation were the ways to go for the industry as regards sustainability.

“Opportunities are before us as underwriters so we need to transit into green insurance so we can sustain the businesses and future of insurance in Nigeria”, he said.