The National Insurance Commission has urged directors in insurance firms to stick to ethical standards.
The Commissioner for Insurance and Chief Executive of the National Insurance Commission, Mr. Sunday Thomas, stated this in Lagos at the 2023 Insurance Directors Conference with the theme ‘The board and insurance business sustainability’.
He said, “As policymakers, it is important for boards to put in place policies and measures that will encourage observance of these environmental, social and governance principles and standards as not doing so constitutes a shared risk to insurers, businesses, governments and society.”
By aligning business operations with ethical standards and contributing to the well-being of the communities, he said, operators would not only fulfil societal responsibilities but also strengthen their brands and customer loyalty.
“Companies do not just die, people kill companies; most of the issues that have led to the collapse of companies resulted from governance challenges,” he noted.
The President and Chairman of the Council, Chartered Insurance Institute of Nigeria, Mr Edwin Igbiti, said sustainability had become a critical agenda in all sectors, and the insurance industry was no exception.
He said, “We are faced with the challenge of balancing economic growth with environmental and social responsibility. Fortunately, technology offers us unprecedented opportunities to create positive change.
“To drive insurance sustainability, we must start by rethinking how we assess and manage risks. Technology plays a pivotal role in this process; we can more accurately assess risks and tailor insurance products accordingly. By leveraging real-time data, insurers can identify vulnerabilities, anticipate potential losses, and proactively manage risks.”
The Principal for Innovative for Resilience at FSD Africa, Dr Elias Omondi, declared that the insurance sector must have some form of supervision that enables it to keep up key components, market stability and market growth.
According to Omondi, insurance supervision is a component that would enable it to ensure that the financial system base is sound.
“Risk-based supervision will help redesign procedures so that the focus is on identifying and quantifying the net risks faced by insurance companies while addressing and resolving them,” he asserted.
