In a strategic move to bolster Takaful insurance in Nigeria, the National Insurance Commission (NAICOM) has embarked on a collaborative effort with Malaysia to enhance capacity building and explore investment opportunities. This initiative was announced by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, during a meeting with the High Commissioner of Malaysia, Mr. Aiyub Omar, in Abuja.
Omosehin outlined the commission’s dual mandate of regulating the insurance industry and promoting its growth and development in Nigeria. He emphasized the importance of studying successful models from countries with similar market dynamics, such as Malaysia, which has experienced significant growth in Takaful insurance over the past three decades.
“This collaboration will enable us to identify best practices and adapt strategies that have proven successful in similar markets,” Omosehin stated. He added that benchmarking against industry leaders like Malaysia would help create a more conducive environment for insurance growth in Nigeria, benefiting policyholders and stakeholders.
The commissioner highlighted the critical role of knowledge sharing in replicating successful models, aligning with President Bola Tinubu’s vision of transforming Nigeria into a $1 trillion economy within eight years. He stressed that with Nigeria’s current low insurance penetration, there is substantial potential for growth and investment, which can be realized through strategic international partnerships.
Omosehin also noted the progress in Nigeria’s Takaful insurance sector, which has grown from a single company in 2013 to six companies under NAICOM’s regulation. He reiterated the need for ongoing knowledge exchange and strategic partnerships to accelerate economic growth and development.
Furthermore, Omosehin informed the Malaysian High Commissioner about the newly passed insurance bill by the Senate, now awaiting concurrence from the House of Representatives. This bill is expected to significantly boost capital in the insurance industry, creating new investment opportunities and enhancing the regulatory framework to foster industry growth.
In response, the Malaysian High Commissioner, Mr. Aiyub Omar, expressed his excitement about the collaboration and appreciated the warm reception by NAICOM. He showed enthusiasm for future partnerships that would benefit both countries.
This collaboration marks a significant step toward achieving NAICOM’s goals of improving the Takaful insurance sector and contributing to Nigeria’s broader economic development objectives.
