NAICOM wants insurance firms to drive industry premium

The National Insurance Commission has urged insurance companies to boost their electronic marketing mechanism to be able to drive insurance premium.

NAICOM noted that the sector’s premium dipped during the COVID-19 lockdown as many insurance companies could not drive sales electronically.

A statement by the commission said the Commissioner for Insurance, Mr Sunday Thomas, charged the operators to be innovative.

Thomas noted that suddenness of the COVID-19 pandemic imposed immense pressure on all businesses including insurance business.

Pressures faced by consumers in the form of reduced finance and business activities, lack of access to credit, expiration and wastage of perishable goods, temporary or permanent business closures and employee contract terminations, life threatening illnesses and deaths all combined to increase the propensity for claims, he said.

Considering that most losses arising from the pandemic were not adequately covered by existing insurance policies, he said, it had become obvious that current insurance product offerings were not adequate to respond to emergent risks and needs of our society.

Thomas said the industry could not continue to ignore the impact of unforeseen events on individuals, businesses, and the insurance industry as a whole.

He said it was important to also state that the work-from-home trend which was gradually becoming the norm heightened the need for digitisation in the Nigerian insurance industry.

According to him, insurance companies were now deploying technology for remote working to enable companies to expand their mode of delivery of products and services to customers.

In this vein, he said, the commission was working on an insurance industry IT framework including cyber risk and security requirements to safeguard the confidentiality and personal data of the insuring public.

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