By LOVETH AZODO, Lagos
Data has long been one of the most pressing challenges confronting Nigeria’s insurance industry, fueling fraud, weakening verification systems, and slowing the pace of market development.
In a strategic move aimed at building a more reliable and integrated data framework for the sector, the National Insurance Commission (NAICOM) has strengthened its partnership with the Ministry of Interior, laying the groundwork for a unified, technology-driven verification ecosystem anchored by the National Identity Management Commission (NIMC).
During a working visit to the Ministry in Abuja, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, led senior officials of the Commission to meet with the Minister of Interior, Dr. Olubunmi Tunji-Ojo, in what both sides described as a pivotal step toward improving insurance penetration, enhancing data integrity, and deepening inter-agency collaboration.
Omosehin commended the Minister for the reforms underway at the Ministry and reaffirmed NAICOM’s statutory role in advising government on insurance matters.
He also emphasized that the Commission is committed to leveraging partnerships with critical ministries to rebuild trust, modernize operations, and expand the reach of insurance products to Nigerians.
Responding, the Minister acknowledged NAICOM’s ongoing efforts to restore public confidence in the insurance system and urged operators to raise service standards across the industry.
He stressed that no economy can grow without a robust insurance sector and emphasized that Nigeria must adopt modern, technology-driven solutions to better protect citizens and reduce the burden on government resources.
A major highlight of the meeting was the shared recognition of the financial strain caused by the repatriation of individuals who die while in Nigeria on short-stay visas an expenditure that currently costs taxpayers billions of naira annually.
Both institutions agreed that introducing a mandatory travel insurance system to cover repatriation costs would significantly reduce government liabilities while aligning Nigeria with global best practices.
The discussions also spotlighted the need to migrate national risk exposures away from government and into the private insurance market.
According to stakeholders at the meeting, enabling insurers to absorb more operational liabilities would not only strengthen risk management but also drive innovation, efficiency and revenue growth within the sector.
Central to the conversation was the urgent need for a single-source verification system supported by NIMC. With fragmented data systems long enabling fraud, multiple identities, and weak claims validation, both NAICOM and the Ministry endorsed a plan to integrate insurance verification processes with NIMC’s national database.
This integration, they said, would create a more robust identity framework, improve transparency, reduce fraud, and streamline access to insurance services for millions of Nigerians.
To actualize these goals, NAICOM and the Ministry agreed to establish a joint technical working group that will explore the feasibility of the proposed travel and repatriation insurance policy, design a centralized material management system, and oversee the development of a unified data verification and synchronization model.
They emphasized that the group will play a critical role in turning policy ideas into actionable reforms.
NAICOM also reiterated its commitment to stronger regulatory oversight, disclosing that it continues to monitor operators through a more sophisticated solvency control and intervention framework designed to protect consumers and preserve financial stability in the industry.
The meeting ended with a shared resolve to build a modern, data-driven insurance sector capable of supporting national development, reducing fraud, and ensuring that Nigerians receive the full protections that insurance is meant to provide.
News1 week ago
News1 week ago