The National Insurance Commission (NAICOM) has expressed concerns over the impact of inflation on the insurance sector, as rising prices affect both policyholders and insurers.
The Commissioner for Insurance and CEO of NAICOM, Mr Olusegun Omosehin, said that for insurance companies, inflation makes it difficult to operate profitably, especially if claims costs increase due to inflation.
He made these comments in a keynote address presented at the Insurance Meets Tech (IMT) 2024 in Lagos, reported Nigerian Tribune.
Speaking on the theme, “Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration”, Mr Omosehin urged insurers to carefully manage their investment portfolios, adapt pricing strategies and maintain adequate reserves to mitigate the challenges posed by inflation.
He added that insurers’ commitments extend to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry.
In attempting to revitalise the insurance industry, Mr Omosehin said stakeholders must address the fundamental issues plaguing the sector, like low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, and digital transformation and adaptation.
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