There is a need for the regulator to boost sustainability in the industry. And also needed is the provision of better tools and approaches to managing the global sustainable risks, which are environmental, social, and governance (ESG).
These were the summary of the maiden edition of the ‘Insurance industry parley’ organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.
The event, themed ‘Sustainable insurance – Issues and trends’, was convened by stakeholders to pave the way for its sustainability.
The experts called on stakeholders to promote sustainable insurance as this is the future of the risk business.
Mr. Abiodun Aribike, The Head of the IT Department, National Insurance Commission (NAICOM), said the commission is using Information Technology to drive sustainable insurance.
Abiodun said the Commission, in partnership with the Financial Sector Deeping Africa (FSD) Africa, has launched the Risk, Resilience and Regulatory Laboratory (R3Lab) in Lagos, which would ensure this objective was achieved.
He added that the initiative was aimed at reducing the impact of specific challenges bedeviling insurance regulation as well as exploring ways in which insurance supervisory, collaboration, and technology, could improve the regulatory effectiveness of insurance.
He said the R3Lab offers a three-tier approach to building the technical capacity and skills of the regulator on innovation and sustainable insurance.
The Head, of Retail Solutions, Axa Mansard, Mrs. Rashidat Adebisi, stress the need for operators to switch their focus from investing in oil revenue to gas, saying gas is more sustainable.
She said: “The world is shifting away from oil. We need to start investing in gas which is more sustainable and greener. We need to take action on sustainable goals as this helps the environment to be saved.
“I urge everyone here to start and lead the sustainable goals conversations in their various companies because sustainability is key.”
Saheed Egbeyemi of Hogg Robinson Nigeria Limited noted that opportunities abound for the sector to tap into, but that the issues of rate cutting, and unhealthy competition had to be addressed. He added that underwriters and brokers should collaborate to push sustainable insurance.
Dr. Yeside Oyetayo, the Rector, College, Insurance and Financial Management (CIFM), would appreciate seeing insurers show more interest in training and programs on sustainable risks.
She said this should be factored into the industry’s academic curriculum. Dr. Yeside wants practitioners to go for more collaboration with other sectors.
She however noted that ESG risks are criteria for determining a company that is sustainable hence the need for training.
Chairman of the occasion, Mr. Olusegun Omosehin, highlighted that collaborations and innovations were the way to go for the industry to achieve sustainability.
“Opportunities are before us as underwriters; so we need to transit into green insurance so we can sustain the businesses and future of insurance in Nigeria,” he said.
Earlier, CIIN President, Sir Muftau Oyegunle, said the event focused on giving back to its members and the industry. Its objective, he said, was to discuss the business environment and how it affects their operations as well as charting the way for insurance to thrive.