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Insurance industry begins 2023 with optimism

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By Mercy Kelani

Though prepared to tackle challenges, insurance sector expects a vibrant 2023.

Insurance operators in Nigeria, after closing annual transaction books for 2022 and opening a fresh one for 2023, said that they were entering 2023 with optimistic thoughts that the new year will be a good one although not without lots of challenges to combat. This expectation by Nigerian insurers is based on the fact that early passage of the budget of the new year would hasten operations because of the awarding and payment of new contracts likewise benefits made from massive investments in technology due to COVID-19 outbreak.

Also noteworthy is that the federal government’s timely approval of N9.24 billion for payment of group life insurance of government workers will improve operations of insurers. These expectations have made Nigerian insurers view the year as a vibrant and prosperous one rather than a stagnated one. This belief is visible in the statement of Mr. Sunday Olorundare Thomas who declared, in the last quarter of 2022, that the insurance sector was advancing towards a new landscape and in 2023, it would be prepared for achievement of insurance inclusiveness in the country.

Achievement of 2023 goals depend on a 12-point initiative.

The insurance commissioner, with great optimism about the new year, approved 200 percent increase in motor insurance premium effect starting from January 1, 2023, two weeks to the new year. Indications also show that there are more upward review of other policy premium rates to be approved which will improve premium generations of operators in 2023. Amidst listing out developments that will bring about positive business initiatives for insurers, he said the commission would keep on with execution of regulatory and market development initiatives to accelerate the insurance industry to a global standard.

Achievement of these goals depend on a 12-point initiative that has its focus on engagement of stakeholders, inclusion of state governments to ensure domestication of the laws and compliance with mandatory insurances and improvement of the insurance business in respective states. It also involves ensuring the market development and Restructuring Initiative for promotion of compulsory insurance products; assessment of feasibility for Index Based Risk Transfer Solution in the agricultural industry; and financial inclusion drive through insurance awareness campaign for financially excluded persons.

Deloitte report affirms challenges for the sector in the new year.

Global insurers are of the opinion that in previous years, many insurance carriers have reflected extraordinary flexibility and resilience in conquering many obstacles, particularly the effect of the pandemic and the economic fallout caused by the Russia-Ukraine war. While systems and abilities improved, vibrant talent and technology were also useful. With this, stakeholders express their concern as to whether the sector is ready for emerging challenges as it progresses into the new year, 2023, and beyond.

An observation by Deloitte in its outlook for insurance sector in 2023 reveals that there are many challenges ahead such as rising inflation, threats of recession, interest rates and loss costs, climate change and geopolitical upheaval, competition from InsurTechs and non-insurance entities. Insurers are therefore advised to work towards longer-term reinvention, top-line growth, group insurers sourcing innovative and shifting dynamics. In aspects of human capital, insurers should ensure reinvention of workplace strategies and movement from infrastructure investment to value realization.

Deloitte report advises that the industry sets strategic plans.

According to the Deloitte report, insurers are confronted by various macroeconomic and geopolitical challenges likely to hinder profitability during the year as well as the increasing threat of global recession, continual economic fallout from Russia-Ukraine conflict and existing COVID-19 concerns. Thus, the report suggests that to set strategic plans, investment priorities and budgets, insurers should work to maintain the momentum of creative adaptation that have been since the past few years, boost upgrades in systems, talent and culture while being customer-centric.


Related Link

Leadway Assurance: Website


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Admin
1 year ago

Insurance industry begins 2023 with optimism – Though prepared to tackle challenges, insurance sector expects a vibrant 2023. – Express your point of view.

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
1 year ago

After completing their annual transaction books for the year 2022, insurance companies in Nigeria will begin a new book for the year 2023.

Adesanyaj72
Adesanyaj72
Member
1 year ago

The Nigerian insurance industry anticipates a speedier implementation of their business strategies if the national budget for the next year is approved sooner rather than later.

Hassan Isa
Hassan Isa
Member
1 year ago

The commission would proceed with the implementation of regulatory and market development strategies in order to hasten the process of bringing the insurance business up to the level of other industries throughout the world.

Taiwoo
Taiwoo
Member
1 year ago

As infrastructure and capabilities matured, thriving human capital and innovative tools proved invaluable. Stakeholders express concern that the industry won’t be prepared for new threats as 2019 continues.

Kazeem1
Kazeem1
Member
1 year ago

Insurers need to assure the reinvention of workplace strategies and a shift away from investing in infrastructure in the direction of value realization.

jdpumping
Member
1 year ago

I stance industry are so very optimistic that 2023 would be far better than 2022 though there would be lot of challenges but it would be tackled head long expecting a vibrant year with the 12 point agenda.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
1 year ago

The initiative for the restructuring of the Promotion of Mandatory Insurance Products; Feasibility Analysis of an Index-Based Risk Transfer Solution for the Agricultural Sector

Haykaylyon26
Member
1 year ago

There will be challenge is better to be prepared to tackle it insurance company preparing for 2023 to implement their business with strategy that will keep up their business this year

Iyanu12345ogg
Iyanu12345ogg
Member
1 year ago

The implementation of regulatory and market development strategies in order to hasten the process of bringing the insurance business up to the level of other industries throughout the world.

Tonerol10
Tonerol10
Member
1 year ago

Insurance industry begins 2023 with optimism. I so much believe thst 2023 will be better than 2022. We also need to choose good president

Ultra0711
Ultra0711
Member
1 year ago

Having a strong human capital and using cutting-edge techniques proved vital as infrastructure and capacities developed. Stakeholders express concern that as 2019 progresses, the business won’t be ready for further threats.

Abusi
Abusi
Member
1 year ago

I hope the optimism equates to having a wonderful insurance sector this year. It will be a great thing to behold. It will help change the perspectives of some people who don’t believe in it, once they see it work.

Tolaniiii
Tolaniiii
Member
1 year ago

As infrastructure and capacity improved, human capital and cutting-edge methods were crucial. Stakeholders worry the industry won’t be ready for more risks in 2019.

Bola12
Bola12
Member
1 year ago

For insurance companies, the only way to meet the challenges of the future is to start planning for them now. In 2023, they plan to put into action the business strategy that has kept them successful thus far.

Christiana
Christiana
Member
1 year ago

Implementing regulatory and market development measures to accelerate the insurance industry’s global competitiveness.

theApr
theApr
Member
1 year ago

In addition to outlining measures that will benefit insurers’ bottom lines, he stated that the commission would continue to carry out regulatory and market development initiatives to push the insurance sector toward a worldwide standard.

DimOla
DimOla
Member
1 year ago

It is always good for every sector to be optimistic over every year and insurance sector has shown that they are ready for the best this 2023 no matter the challenges that may eventually follows.

Remi1
Remi1
Member
1 year ago

The reinvention of workplace strategies and a move away from infrastructure investment in favor of value realization are two things that insurers need to ensure.

SarahDiv
Member
1 year ago

To be optimistic in life is the first step towards success in life. The insurance sector have began the year optimistic it minding the challenges on the way in this year 2023 they will definitely succeed.