As momentum into the 2024 festive season continues, businesses, especially Small and Medium Enterprises (SMEs), face paradoxical realities of increased sales opportunities and consequent cocktails of business risks.

Recognising that with consumer spending and holidaymaking increasing businesses for SMEs lurks the possibilities of risk from these spikes in commercial activities such as – theft, accidents, burglaries, fire outbreaks, frauds, and system failures, Leadway Assurance has reaffirmed its position as a transformative partner to SMEs by empowering businesses with practical strategies for navigating the complexities of the season.

A recently concluded webinar, “Driving Increased Sales During the Festive Season,” organised by Leadway, brought together industry leaders, SME experts, and government representatives to share insights and practical strategies designed to empower businesses during this peak sales period.

Highlighting its role as more than just an insurance provider, Leadway focused on equipping SMEs with tools to navigate market complexities, amplify their sales potential, and safeguard their operations. This aligns with the brand’s mission to deliver robust risk management and business solutions to bolster economic growth.

Umashime Oguzor-Doghro, Head of the Retail Division at Leadway Assurance, who headlined the speaker’s lineup, highlighted the importance of the season on businesses and the role of risk mitigation tools at such a critical time: “The festive season is a time of immense opportunity, but it also comes with unique risks for SMEs. Our theme reflects our dedication to helping businesses not only navigate the unique challenges of the festive season but also seize opportunities to drive growth and profitability. At Leadway, we see it as our duty to address these challenges and help businesses capitalise on this critical period for growth. We are committed to being a trusted partner in building sustainable success for businesses across Nigeria.”

The webinar featured an illustrious panel, including Ayo Bankole, CEO of Caladium Consulting; Olubunmi Kole-Dawodu, Deputy Director at SMEDAN Lagos State Office; Okikioluwa Oyeyiga, Business Director at The Hook Creative Agency; and Derinsola Adebayo, Founder of Leky Mills. Discussions delved into pressing issues such as inventory management, supply chain disruptions, cybersecurity threats, and the skepticism many SMEs harbour towards insurance.

“Insurance is often seen as a reactive tool, but at Leadway, we position it as a strategic asset. With our competitive risk management solutions—spanning property, transit, and employee coverage, we enable businesses to operate with confidence, knowing they are protected from the unforeseen. What sets us apart is our free advisory service, which ensures businesses are fully equipped before they even take up our insurance products.” Umashime added.

In addition to risk management, the webinar championed collaboration as a catalyst for success. Leadway’s partnerships with event managers and SME stakeholders aim to ensure seamless operations during the festive season, reinforcing the company’s role as more than just an insurer but a reliable business ally.

“As Nigeria’s leading insurance provider, we understand the intricacies of running a business in today’s climate. The festive season is a time for SMEs to reimagine their potential. By partnering with Leadway, businesses gain access to a unique combination of expertise, protection, and growth strategies that enable them to deliver exceptional value to their customers and achieve measurable success.”, she concluded.

With over five decades of expertise and a legacy of innovation, Leadway Assurance remains committed to championing the growth of Nigerian SMEs. Through its comprehensive offerings and unwavering support, the company continues to redefine what it means to insure not just businesses, but their aspirations for the future.

L-R: Mr. Kunle Ahmed, Chairman, Nigerian Insurers Association (NIA); Mrs. Temitayo Sogbola, rep. Mr. Akinjide Orimolade, MD/CEO, Stanbic IBTC Insurance Ltd; Mr. Tope Smart, Group Chairman, NEM Insurance Plc; Prince Cookey, Publisher/Editor-in-Chief, Business Journal Media Group; Ms. Adetola Adegbayi, Founder/CEO, Mutual Specialists Ltd; Mr. Godwin Agbananye, rep. Dr. Adaobi Nwakuche, MD/CEO, Veritas Kapital Assurance Plc; Lolo Idu Okeahialam, Former MD/CEO, Access Pension Fund Custodian Ltd and Sir Muftau Oyegunle, Former President of CIIN at the Business Journal Annual Lecture 2024 in Lagos yesterday.

Insurance operators and stakeholders in Nigeria have been urged to reposition the sector as a key driver of sustainable economic growth in the country.

The charge was made by the Managing Director/Chief Executive Officer, Stanbic IBTC Insurance Limited, Mr. Akinjide Orimolade, in his Keynote Address at the 2024 Business Journal Annual Lecture themed: “Repositioning the Insurance Industry to Drive Sustainable Economic Growth in Nigeria,” in Lagos yesterday.

Highlighting the role of the insurance industry in driving economic sustainability to include improving risk management, capital mobilisation, financial stability, employment generation, consumer protection, promotion of trade, and social stability, Orimolade, who was represented by Mrs. Temitayo Sogbola, MD/CEO of RiskTech & Advisory, emphasised the need for the repositioning of the sector to play its roles well in this regard.

“Repositioning the sector as a key driver of sustainable economic growth in Nigeria is essential to address current challenges. This is achievable through innovative solutions, regulatory reforms, and collaborative partnerships.

“By focusing on increased awareness, product innovation/ diversification, and technology, the insurance sector can become a powerful tool for financial inclusion, economic stability, and long-term sustainable economic growth. With the right policies and industry practices, insurance can play a vital role in Nigeria’s journey towards becoming a more resilient, inclusive, and prosperous economy,” the Keynote Speaker emphasized.

He listed three pathways through which the Insurance sector contributes to sustainable economic development: households, the private sector, and the public sector.

“Households: Savings/Investments, Lower Out-of-pocket expenses for healthcare, Healthcare, and Paying off a borrower’s outstanding debt.

“The Private Sector: Access to credit, Agriculture Development, and Innovation.

“Public Sector: Gross Domestic Product (GDP)/Economic growth, Job creation/employment, Reduction of financial loss, Savings, Allocation, Assets and Liabilities Management, Fiscal space in case of natural disasters, Supplement, and exports/imports,” he explained.

He spoke on the internal and external initiatives of the insurance sector in sustainable economic development.

According to him, internal initiatives “are initiatives performed within the organization impacting employees, internal processes, policies, and procedures. Such initiatives include Reducing carbon footprint through various initiatives such as Process automation that reduces paper usage and the Introduction of Solar/Gas into the energy mix.

“People and Culture: Improve employee well-being and experience, train the workforce on sustainability-related subjects, and financial education to create awareness.

“Governance: Governance processes that support specific sustainability-led missions and goals and meet sustainability-related reporting standards such as International Financial Reporting Standard (IFRS) S1 and S2.”

On external initiatives, the Keynote Speaker said “These are initiatives performed by the organization impacting the society and their brand image, to generate revenue. Such initiatives include: Product Innovation such as carbon neutral insurance, green bonds, green underwriting, sustainability-linked investment in renewable/ alternative energy projects and sustainable infrastructure projects

“Develop culturally sensitive products that resonate with Nigeria’s diverse population, such as the expansion of micro-insurance tailored to informal sector workers

“Use data analytics to better understand customer behaviour, price risks accurately, and design more responsive products

“Partnerships with Financial Institutions: Collaborate with banks, fintech, and microfinance institutions to distribute insurance products. For example, bundling insurance with loans or savings accounts can increase penetration

“Foster an ethical industry culture where customer interests are prioritized to rebuild trust.”

Speaking on the areas of the Sustainable Development Goals (SDGs) that Insurance companies can positively impact, he said, “Insurance companies can have an impact on climate change through their role as investors in companies,” adding that “In paying claims, they help promote higher construction standards.”

“Insurance companies can support this goal through Motor Insurance by incentivizing safe driving habits.

Insurance companies can invest in infrastructure projects; Insurance companies can support this goal by expanding and providing Health Insurance to a larger share of the population. Health insurance also helps to reduce out-of-pocket expenses

“Micro-insurance has significant potential here as it assists families in withstanding economic losses due to illness, property damage, or death of a wage earner.

“Insurance creates financial stability by making economies more resilient. They also offer credit insurance that helps companies grow bigger. Insurers also create employment through their activities

“Insurance can contribute to this goal via paying claims that ensure the business continuity of companies after a loss, preserving employment, and using pension products to reduce old-age poverty,” he enumerated.

REMARKS BY THE COMMISSIONER FOR INSURANCE, MR. OLUSEGUN AYO OMOSEHIN, AT THE 2024 INSURANCE DIRECTORS’ CONFERENCE HELD AT RADISSON BLU HOTEL, IKEJA, LAGOS STATE ON NOVEMBER 20, 2024.

Protocol:

I am most honoured to address this gathering of Pillars of our industry and warmly welcome you to the 2024 Insurance Directors’ Conference.

This gathering is always very crucial in setting the agenda for the insurance industry where strategic leadership issues in the sector would be discussed, focusing on navigating complexities and ensuring sustainability.

The theme for this year’s conference “Board Performance in the Nigerian Insurance Industry: A GRC Approach” focusing on the performance of the Board and the critical role of Governance, Risk and Compliance principles, could not have come at a better time.

In today’s global business landscape, integrating GRC at the Board level is vital for business success and sustainability. It is no longer optional, but an essential ingredient for enhancing decision-making, transparency, accountability and risk management. Effective GRC ensures that Boards have the necessary tools to make informed decisions, identify potential risks, and maintain the highest standards of compliance.

My duty this morning is to give an opening remark since the organisers have assembled experts to explicitly take us through the topics.

However, as a regulator, we believe that one of the key challenges that the insurance industry is currently grappling with is the issue of subpar corporate governance practices, poor risk management and a very low compliance culture. To overcome these challenges, the Board as the highest policy making organ for the various institutions must demonstrate genuine commitment and strict adherence to Governance, Risk, and Compliance principles. If carefully implemented this will improve decision-making, increase transparency and accountability, and ultimately improve regulatory compliance.

Distinguished Ladies and gentlemen, on our part, the National Insurance Commission (NAICOM) is committed to aligning the insurance sector with the President’s goal of growing the Nigerian economy to USD$1 trillion by 2030, and achieve this, the commission is committed to creating the necessary regulatory framework required to achieve meaningful contribution from the insurance sector. De-risking a trillion-dollar economy takes more than mere rhetorics.

To this end, we are fully committed to working with the National Assembly in delivering the required legal and regulatory framework which would flow from the successful passage of the 2024 Insurance Reform Bill. Also, as part of our strategic plan, the commission has set 5 key priorities that will deliver on this agenda:

• safeguard policyholders and improve confidence in the insurance industry
• Strengthen our supervisory capabilities
• Improve safety and soundness of our institutions
• Foster Innovation and sustainability of the insurance industry
• Enhance overall insurance accessibility and penetration in Nigeria

Unifying our efforts to embed these critical pillars across all stakeholders’ strategies will ultimately redefine the industry’s landscape and chart a clear path to success. At this critical point, I want to emphasis the importance of addressing certain critical areas that are pivotal to the insurance sector’s expansion and safeguarding policyholders’ interests.

The Commission’s primary focus is on ensuring timely payment of genuine claims (payment of claims and timely too). We expect all insurers to significantly reduce their outstanding claims by the end of the year, as emphasized during the last Insurers Committee meeting. Unnecessary delays in the settlement of genuine claims will no longer be tolerated.

As a Commission, we are committed to strictly enforcing the law and taking swift action against any insurer failing to meet their claim obligations. Simply put, if a company cannot honor legitimate claims, it has no place in our industry.

The financial stability and soundness of our institutions are now more vital than ever. To remain relevant and competitive, our institutions must comply with all the relevant prudential regulations and requirements. We must begin to prepare our various entities well ahead of the Risk-Based Capital regime, so ensuring adequate capitalisation is no longer optional. We must prioritise robust capitalization to effectively tap into target markets and navigate current industry realities. The Commission, in the last one and half years have successfully examined a few of our institutions using the Risk Based Supervision Approach, even though the exercise has not been fully completed.

However, we are using this medium to seek your cooperation as Directors of those institutions and demand compliance on issues that have been raised and directed to the various Boards, for attention.

In conclusion, distinguished directors, I urge you all as policymakers across our institutions to develop and implement policies that promotes adherence to good governance, effective risk management and compliance principles.

Our goal is to ensure sustainability, securing the long-term viability and future resilience of insurance entities. We all have a stake in the prosperity of our institutions since insurance sector’s growth is essential to the overall health and resilience of our national economy. I wish you a successful Conference.