New Telegraph

NAICOM tasks insurers on use of technology

The National Insurance Commission (NAICOM) has advised operators in the insurance sector to embrace technology if in order to grow their business.

 

The Commissioner for Insurance, Mr Sunday Thomas, while addressing the stakeholders, lamented the declining participation of local insurers in big ticket businesses due to lack of technology.

 

He said: “The industry must embrace technology to move forward. The industry must invest handsomely in technology, which is one of our key drivers for developing the market. Institutions should be prepared to digitalize their processes, procedures and systems in order to make their operation seamless and real time.” He stated that the commission was investing heavily in automating its processes and expects nothing less from insurance institutions. According to him, “as business owners and as businesses spring up, we must ensure that we put the right processes in place in trying to manage our assets and ensure that we have more strategic thinking.” Thomas noted that more businesses were being reinsured abroad, which is further eroding the capacity of the local market. He said: “More businesses especially in the aviation sector and oil and gas are now being reinsured abroad. Of more concern is the declining participation of life companies in the annuity business which is the emerging business for our industry.

 

These are the areas where the industry can impose itself on the economy through the control of funds for national development; unfortunately, we are missing it.”

 

The commissioner further advised the insured public not to discard insurance as part of measures to cut cost in the face of the harsh economic situation. He said:

 

“It is good to reduce cost but in terms of insurance, people should ensure that all assets are adequately insured. It is good to have a good risk management framework as well as be able to manage our insurances and assets

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