NAICOM instructs insurers to invest in technology – Business – The Guardian Nigeria News – Nigeria and World News
The National Insurance Commission (NAICOM) has urged insurance operators to invest significantly in technology to drive efficient business operations in the industry.
This was argued by Insurance Commissioner Sunday Thomas at a conference in Lagos. He said insurers should prioritize investing in technology to deepen market penetration.
Thomas lamented that the decline in the participation of local insurers in large companies due to the lack of appropriate technology has been a major setback.
Worried by this development, he said, insurance companies are losing underwriting activities in the oil / gas and aviation sectors.
He said: âThe industry needs to invest generously in technology, which is one of the main drivers of market development. Institutions must prepare to digitize their processes, procedures and systems to make their operation transparent and in real time. “
He said the commission is investing heavily in automating its processes and expects nothing less from insurance operators.
âAs businesses emerge, we need to make sure that we have the right processes in place to try to manage assets and ensure that we have more strategic thinking,â he said.
Thomas noted that more businesses are insured overseas, further eroding capacity in the local market.
He said: âMore and more companies, especially in the aviation and oil and gas sector, are now reinsured abroad. Even more worrying is the declining participation of life insurance companies in the annuities sector, which is the emerging activity of our industry.
These are the areas where industry can impose itself on the economy by controlling national development funds; unfortunately we miss him.
The Commissioner advised the insured public not to abandon insurance as part of cost-cutting measures in the face of the difficult economic situation. âIt’s good to cut costs, but in terms of insurance, people should make sure all assets are properly insured. “
According to him. âIt’s good to have a good risk management framework to be able to manage insurance and assets. Many have the opportunity to cut costs, however, not all cost cuts will measure success and some could even end up hurting our businesses.
Thomas takes the audacity to say that the insurance industry has proven its relevance in the business of the economy.
“Risk is part of our business efforts and the best thing to do is assess and see how much of the risk you can transfer.”
At various stakeholder meetings held across the country from last year to date, speakers lamented the failure of operators and stakeholders to effectively deploy technology tools to boost footfall for products from insurance by the public.