NAICOM boss decries impact of inflation on insurance industry

The Commissioner For Insurance, Mr Olusegun Omosehin, on Friday decried the impact of inflation on the insurance industry.

Omosehin, also the Chief Executive Officer(CEO), National Insurance Commission (NAICOM), raised the concern at the Insurance Meet Tech(IMT) 2024 conference held in Lagos.

He said this had been a major concern for the insurance sector, adding that rising prices affect both insurers and policyholders.

The commissioner, represented by the Head, NAICOM Lagos Control Office, Mr Julius Odidi, noted that it could be difficult for insurance companies to operate profitably, especially if claims costs increase due to inflation.

“To mitigate this, insurers must carefully manage their investment portfolios, adapt pricing strategies, and maintain adequate reserves.

“It is critical to note that navigating the current macroeconomic realities successfully would be a natural precursor and building block for the revitalisation of the

insurance industry,” he said.

Omosehin assured that NAICOM had prioritised prompt settlement of all genuine claims, fair treatment of policyholders and utmost transparency, as some of the ways to boost the insurance industry’s image and support economic growth.

He noted that the commission resolved to give priority to settlement of genuine claims, as that was the fundamental reason of its existence as an industry.

The commissioner stated that it was critical for insurers to embrace digitalisation.

According to him, insurers must modernise their processes, enhance customer experiences through digital

channels, and invest in technology to streamline operations.

“Adapting to changing consumer behaviours and preferences is equally important, as offering online policy purchase, claims processing, and customer service can attract tech-savvy customers,” he said.