The National Insurance Commission (NAICOM) is encouraging insurance operators in Nigeria to engage in more technology-driven investments as means of driving efficient business operations.
Sunday Thomas, Commissioner for Insurance, said that insurers ought to make investments in technology as a matter of priority in order to deepen market penetration.
He lamented the declining participation of local insurers in big-time businesses in areas such as oil, gas, and aviation sectors.
According to Thomas, technology is one of the key drivers for developing the market, therefore, the insurance industry has to invest handsomely in it. Insurance companies must be ready to digitalize their processes, procedures, and systems in order to make their operations seamless and real-time.
NAICOM has started to invest heavily in automating its processes, and as such, expects insurance companies to follow along. This move will also help companies to insure at home. At the present time, more businesses are enrolling abroad, and this further erodes the capacity of our local market.
Thomas encourages Nigerian insurers to put the right processes in place and try to manage assets while ensuring that we have more strategic thinking. Of more concern to him is the declining participation in annuity business which is the emerging business for the insurance sector in Nigeria.
It is time for insurers to stop missing opportunities in which they can make use of to generate funds for national development.
On the other hand, he encouraged the general public not to cut off insurance as a way to cut costs in the face of harsh economic times. Although it is good to save costs, when it comes to insurance, he encouraged people to ensure that all assets are adequately insured.