As the global community implement sustainable programmes in response to social, economic and environmental realities, players in the Nigerian insurance industry have found need to align with product offerings and payouts.
According to the industry, companies must invest in green product such as weather insurance, pollution environment liability and crop insurance, and also ensure that payouts promotes sustainability.
Sunday Thomas, commissioner for Insurance/CEO, National Insurance Commission (NAICOM) at the 2022 Insurance Directors’ Conference held in Lagos said industrialisation and economic development have given rise to a wide spectrum of environmental externalities and social impacts bringing to the fore issues such as board structure, shareholder rights, business ethics, risk management, incentives and executive compensation.
He said for businesses to continually develop, they must take into consideration the community in which they operate, ensure consistent value to customers, maintain the highest standards of governance and ethics, and mitigate its overall impact on the environment.
Commenting on the conference theme: “Transforming the Insurance Industry Through ESG Principles: Directors’ Roles”, Thomas said is specially couched in view of the fact that the world is going through rapid changes economically, socially, and environmentally and, the need to bring directors of insurance entities to speed on these developments to enable sustainability.
“The role of board of directors in the survival and transformation of their establishments can never be over emphasized thus, this Annual programme is meant to apprise the directors with the developments in the industry and also equip them with necessary knowledge that will enhance the value of their companies”.
“As your regulator, it’s our responsibility to draw your attention to this development and to continuously encourage you to comply with the following principles in the best interest of your companies and the larger insurance sector”.
“Entrenching in your decision-making environmental, social and governance issues relating to the conduct of insurance business with respect to strategy, risk management and underwriting, product and service development, claims management, and sales and marketing”.
Others are, working with other stakeholders to raise awareness on environmental, social and governance issues, manage risk and develop solutions in the conduct of insurance business in Nigeria; working together with government at all levels, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues in the insurance sector; and demonstrate accountability and transparency in regularly disclosing publicly your progress in implementing these principles to relevant institutions responsible for monitoring and evaluation of compliance.
“In the same vein, NAICOM also expects that you will take interest in pursuing developments of green products, improving operations geared towards energy efficiency, investment strategies, leveraging technologies, insuring people with disability, corporate social responsibilities (CSR), improving and complying with professional standards.
On our part, the commission has already evolved certain initiatives in the area of sustainability and these are climate change: flood and disaster management; monitoring population growth – annuities insurance longevity; green technology- work on electronic submission of regulatory returns and renewal of licenses, he said.
