FG Urges Sub-regional Insurers to Prepare for Global Competitiveness

Ebere Nwoji

The federal government has tasked insurance operators across the West African sub-region to get prepared for big business opportunities in the sub region and reposition for global competitiveness already staring on their faces.

The Minister of Finance Budget and National Planning, Dr Zainab Ahmed who charged the insurers at the on going 2023 education Conference of the West African Insurance Companies Association (WAICA) and 50th Anniversary holding in Lagos, listed areas the sub regional insurers should focus attention in their preparation.

Ahmed who was represented by the Commissioner for Insurance Mr Sunday Olorundare Thomas said the sub regional insurers should pay attention to regulatory environment, product offering, the incorporation of technology in all ramifications of their business,human capital development as well as collaboration in their business operations.

She noted that among sub regional insurance markets, various countries still operate different regulatory systems pointing out the need for review of different laws, regulations and practices.

She said if this is done, it would prepare them for global competitiveness.

She noted that technology was no longer enabling tool but business driver insisting that the sub regional operators must incorporate technology in all ramifications of their business.

On human capital development, the Finance Minister noted that insurance business was a knowledge driven business with new ideas and innovation erupting every day.

She said therefore human capital development that will manage these ideas and innovation is highly needed.

She also noted that there was need for extensive collaboration among the sub regional insurers

She recalled that in the year 1973, the founding fathers of WAICA created this great association (WAICA) with the purpose of improving the image of the insurance industry in West Africa, whilst assisting in establishing an enabling environment for industries and economies by promoting cooperation in every respect amongst all the insurers and reinsurers companies operating in its sub-region.

“In modern business environment, disruption plays an integral part of any business. Hence, the 2023 WAICA Educational Conference choice of theme: “Repositioning the Insurance Industry in West Africa for Global Competitiveness,” could not have been more propitious in view of the overarching objective behind the African Continental Free Trade Area (AfCFTA) which is to accelerate intra-African trade by providing a single market for goods and services, facilitate movement of persons in order to deepen the economic integration and prosperity on the Continent as well as boosting Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations.

She stressed the need to establish high quality insurance database to provide a holistic view of the industry’s operations in the sub-region.

She called on WAICA members to leverage technology and other alternative distribution channels in order to increase market penetration; “as well as the importance of enhancing multilateral cooperation with the objective of promoting international standards in fostering favourable investment environments and orderly markets in the West African sub region and beyond.”