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Insurers in Nigeria have been urged to brace up for disruptive tendencies that may shape their operations, if they must remain relevant in the changing ecosystem.
Factors such as distribution, claims, operation proposition, risk and capital are capable of driving insurers’ potential for future success, even as they consider their digital strategies in a shifting landscape.
The National Insurance Commission (NAICOM) gave this advise to the insurance operators in the country when its Director, Supervision Directorate, Barineka Thompson, warned that “the insurance industry is undergoing profound change. This disruption is not just digital — harsh market conditions, demanding customers, innovative new market entrants and regulations,” but added that they are just some of the forces transforming the insurance industry.
Thompson counselled that where challenge exits, there is an opportunity, and all the sources of disruptions can be harnessed to become a source of growth for insurers.
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He added that “while no one can predict exactly what insurance might look like in a decade, insurers can take several steps now to prepare for change.”
The NAICOM Director, who spoke on “The Future of the Nigerian Insurance Sector in a Shifting Landscape”, to journalists stressed that the insurance ecosystem is evolving rapidly, and insurers can no longer lean on old familiar ways while the prevailing technological and strategic winds shift around them.
According to him, insurers should embrace technology across the customer journey if they hope to secure the trust and loyalty of tomorrow’s policyholders, as the often-cloudy present opens up toward a brighter future.
“Like many industries where digitization has taken hold, tech shouldn’t be adopted for
techology’s sake. Simply upgrading to the latest technological trend is not enough to sustain a competitive edge,” he warned, and called on insurers to focus on factors that drive potential future success.
The commission noted that the Nigerian Insurance industry despite its relative size has proven to be one of the most resilient and fastest growing sectors in the Nigerian economy
It pointed out that in the recent past especially, the last five-years, it defied several economic recessions and the effects of the global COVID-19 pandemic, at a period when other sectors of the economy pointed south, and the market as measured by the industry gross premium income (GPI) has maintained a steady growth throughout the period of 2017 till date.
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