The National Insurance Commission of Nigeria (NAICOM) and Malaysia insurance will collaborate in two important areas of capacity building and investment opportunities in takaful insurance.
This was decided during a meeting between the Nigerian Commissioner for Insurance and CEO of the National Insurance Commission Mr Olusegun Ayo Omosehin and High Commissioner of Malaysia in Nigeria Mr Aiyub Omar in Abuja recently.
According to media reports this discussion should enable the Commission to identify best practices, gain valuable insights and adapt strategies that have proven success in similar markets. Malaysia has witnessed rapid growth in takaful insurance over the past three decades.
Mr Olusegun Ayo Omosehin said by exploring international models and benchmarking against industry leaders, the Commission aims to create a more conducive environment for insurance growth in Nigeria, ultimately benefiting policyholders and stakeholders alike.
He said it is important to share knowledge and to replicate successful models in various areas including insurance in Nigeria, particularly to achieve President Bola Tinubu’s vision of a $1tn economy.
He said the country desires to achieve this landmark within eight years and for this it relies heavily on collaborations with foreign governments, including Malaysia, especially in view of Nigeria’s low insurance penetration the potential for growth and investment is substantial.
Nigeria has made significant progress in the takaful insurance sector, expanding from a single company in 2013 to six companies currently under the National Insurance Commission’s regulation.
The Nigerian senate has recently passed a new insurance bill which now awaits an approval from the country’s House of Representatives.
This bill is expected to significantly boost capital in the insurance industry and create new investment opportunities. The bill seeks to promote the growth and development of the insurance industry in the country.
Noting NAICOM’s strong interest in developing the industry, the Malaysian high commissioner pledged to facilitate connections between Malaysian Takaful insurance companies and NIACOM.