Stakeholders raise bar for new NAICOM boss

BY EMEKA EJERE

There is high optimism among stakeholders in the Nigerian insurance industry that the new commissioner for insurance/chief executive officer, National Insurance Commission (NAICOM), Mr. Sunday Thomas, will do everything within his powers to move the industry forward.

Thomas whose appointment was necessitated by the exit of Alhaji Mohammed Kari, who completed his first four-year tenure in office in that capacity and handed over to him as the most senior officer in the commission, had his appointment approved by President Mohammadu Buhari, on Sunday, April 3.

Prior to his new position, the new NAICOM boss, who has over three decades of experience in the industry as an operator and regulator, was the deputy commissioner for insurance, technical, having been so appointed by President Buhari in April 2017.

That Mr. Thomas was a former director general of the Nigerian Insurers Association (NIA) for almost a decade makes many believe that he understands the feelings and pulse of the underwriters and knows where the shoe pinches.

Whereas operators saw the regime of Kari as very high handed, punitive in nature and one that hardly seeks their opinions on critical issues, they are expecting to get solace from Thomas.

The insurance industry has since the days of the late Oladipo Bailey at the helm of affairs suffered series of crisis between the operators and the regulator most of which ended in court cases. The crisis has always been either between the regulator and the underwriters or between the regulator and the brokers.

However, the coming of Mr. Fola Daniel in 2007 brought respite which lasted till the end of his tenure. But it was not so with Alhaji Kari, whose leadership once again rekindled the fire of crisis that raged throughout his first tenure of four years, a situation which cost him the opportunity of serving his second tenure like his predecessor.

Previously an operator, Thomas is seen by the industry operators, including insurance underwriters and brokers as a home boy just as he himself sees the position as a home coming.

Little wonder when his appointment as acting commissioner for insurance was announced on August 9, 2019, the industry went into wide jubilation, having seen him as a right peg in a right hole. According to the federal government, his appointment was to ensure the effective administration of the commission in line with the provisions of the National Insurance Commission Act 1997.

Expectations

Speaking on what Thomas should bring to the table an insurance expert, Mr. Patrick Douglas, urged the new commissioner to improve the level of data available in the sector, which he described as a challenge for the sector.

The challenge, which he said had lasted more than it should especially in an era of IT regime, was depriving the industry a lot of opportunities outside Nigeria. He stressed that nobody in the present world wants to do business with any organisation without data.

He said, “There are no data, not even with government agencies and it is really affecting businesses. If I want to do a business with you, there are some basic details I will need you have but ready data are not there to fetch any required details from.

“In countries that have got it right, the information is there. For instance, through such data, you can know the level of compliance in terms of the purchase of the compulsory insurance.

“With such information available, you can effectively go after those who are yet to subscribe to ensure full compliance. And it is because there is such ready information that people feel apprehensive to readily respond to such compulsory regulations.”

Similarly, a group known as Concerned Stakeholders stressed the need for NAICOM’s operations to be automated. They pointed out that it was the only regulator in the financial sector that was not automated and urged the new acting commissioner to drive the process.

The group further said in addition to automation, the new commissioner should consolidate on some of the good initiatives of a former commissioner for insurance, Mr Fola Daniel.

Speaking specifically, the group said the portal system which the administration started but which was not pursued by the immediate past commissioner must be implemented. The NAICOM portal which the previous commissioner introduced was meant to provide a means for members of the public to check that insurance policy they purchased was valid; allow members of the public to verify the credentials of insurance vendors and operators; allow insurance agents, brokers, and underwriters to interface with NAICOM to provide information to satisfy regulatory requirements of the commission; assist NAICOM in performing its regulatory role by monitoring the issuance of all insurance policies in the country as well as allow law enforcement personnel to verify any insurance instrument tendered to them in the course of discharging their duties.

Thomas is also expected to pursue the second phase of the industry’s medium term plan tagged Market Development and Restructuring Initiative (MDRI) which target is to transform the industry with annual premium still less than N400 billion to a trillion-naira market, increase insurance contribution to GDP to three per cent, from the current 0.06 per cent, create 50,000 jobs as well as enforce all the six compulsory insurances.

Above all, the group recommended that the new insurance commissioner must initiate policies that would scale up the performances of insurance and ensure that in comparison to other African countries in terms of premium generation, Nigeria maintains a positive premium generating column that justifies its present position as the largest economy in Africa.

The insurance broking sub-sector is also looking up to Thomas led administration with a view to having some of their challenges attended to.

Prominent among the issues that bothered the brokers is contending with huge fines and penalties for minor infractions, which had warranted the Nigerian Council of Registered Insurance Brokers (NCRIB) to invent a mediatory platform to reduce the life-threatening policies towards its members. Today, the brokers are optimistic that the issue will be over having laid it down before NAICOM.

According to the President of the NCRIB, Dr. (Mrs.) Bola Onigbogi, who is happy with the relationship between the broking sector and the insurance industry regulator, Thomas has given an assurance to support her council. While not expecting anything less from the new NAICOM boss, she also lauded the Thomas- led administration for the duration of license renewal which had been extended by the regulator.

On his part, the chairman-in-council, Association of Registered Insurance Agents of Nigeria (ARIAN), Mr. Gbadebo Olamerun, expressed optimism that Thomas will succeed and leave very lasting legacies for generations unborn to follow, noting that what the industry needed at this critical time is “a complete insurance man who knows what it takes to be displaced and to be in place.”

In a WhatsApp interview with Business Hallmark, Mr. Olamerun described Thomas as a “fully grounded insurance professional trained across board with unusual human understanding and meekness.”

With Thomas, Olamerun expects the industry to experience nothing less than “unprecedented monumental growth in a calm atmosphere with clear cut focus and focal direction and equity for all stakeholders and operators in the industry, especially the insurance agents.”

Alluding to the Holy Bible, Mr. Olamerun, a one-time national president of ARIAN, wrote, “…and Isaac sowed in that same year of famine and reaped a hundred fold likewise did Thomas sawed in that year of Covid-19 and got his long awaited confirmation.”

Agenda for 2020

While unveiled the major initiatives NAICOM will leverage to propel the insurance industry forward in 2020 at the 2020 NAICOM seminar for insurance journalists held in Kano in January, Thomas stated that the commission is shifting focus from compliance issues to emphasise more of its market developmental responsibility.

According to him, the task of building a strong and virile insurance sector remains a collective responsibility of all stakeholders.

The then acting NAICOM boss disclosed that the second phase of the MDRI introduced in 2009 would soon commence with focus on the enforcement of the compulsory classes of insurance.

He said, “As the year 2020 continues to unfold, giant strides will be made by the commission in all aspects of its statutory responsibilities. This is the time to put the past behind us and look forward to a better and more vibrant sector.

“The task of building an insurance sector of our dreams is a collective one and thus, all hands must be on deck to ensure our dreams become realities. We recognise the impact of conducive work environment to effective and efficient regulatory system and this will always remain our priority.

“The second phase of the MDRI will soon be unveiled and it will mark out clear targets and tasks for all stakeholders in the industry. Going forward, we shall vigorously pursue the continued implementation of compulsory insurances in every nook and cranny of the country.

On the ongoing recapitalisation exercise, Thomas said the essence of the recapitalisation is a move to ensure that the industry becomes more robust in its technical competence and financial base, building confidence, trust and enhancing market value.

“Let me state in clear terms that the recapitalisation process is up and running in line with the roadmap and the commission will see to its logical conclusion come December 31, 2020.”