Insurance Commissioner Tasks Directors on Commitment, Governance, Risk Compliance

Ebere Nwoji

The commissioner for insurance, Mr Olusegun Ayo Omosehin, has emphasised the need for Board of insurance companies to demonstrate genuine commitment and strict adherence to governance, risk, and compliance principles.

Omosehin, who stated this  at the 2024 Insurance Directors’ Conference held in Lagos, said  as the highest policy making organ of every insurance institution, members of board of every insurance firm  must demonstrate genuine commitment and strict adherence to governance, risk, and compliance principles. 

This year’s conference has the theme, “Board Performance in the Nigerian Insurance Industry: A GRC Approach.”

He said to  overcome these challenges, the board should help to  improve decision-making process, increase transparency and accountability, and ultimately improve regulatory compliance.

“However, as a regulator, we believe that one of the key challenges that the insurance industry is currently grappling with is the issue of subpar corporate governance practices, poor risk management and a very low compliance culture.

“In today’s global business landscape, integrating GRC at the board level is vital for business success and sustainability. It is no longer optional, but an essential ingredient for enhancing decision-making, transparency, accountability and risk management. Effective GRC ensures that boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance,” he noted.

Omosehin added, “NAICOM is committed to aligning the insurance sector with the president’s goal of growing the Nigerian economy to $1 trillion by 2030, and to achieve this, the commission was committed to creating the necessary regulatory framework required to achieve meaningful contribution from the insurance sector.

“De-risking a trillion-dollar economy takes more than mere rhetorics. To this end, we are fully committed to working with the National Assembly in delivering the required legal and regulatory framework which would flow from the successful passage of the 2024 Insurance Reform Bill.”

He stated that as part of the Commission’s strategic plan, it has set five key priorities that would  deliver on this agenda, namely: Safeguarding policy holders and improving confidence in the insurance industry; strengthening  our supervisory capabilities; improve safety and soundness of our institutions; foster innovation and sustainability of the insurance industry and enhance overall insurance accessibility and penetration in Nigeria.