NAICOM collaborates with Malaysia on Takaful insurance

The National Insurance Commission is in collaboration with Malaysia to boost Takaful insurance operations in Nigeria.

This came to light when the Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission, Mr. Olusegun Omosehin, hosted the High Commissioner of the High Commission of Malaysia to Nigeria, Mr. Aiyub Omar, at his office in Abuja recently.

Takaful is the Islamic alternative to insurance that allows individuals to pool their money together to insure against losses or damages.

A statement from the Commission made available to The PUNCH revealed that both parties agreed to collaborate in the areas of capacity building and investment opportunities.

During the meeting, the CFI suggested studying countries with similar characteristics, such as Malaysia, which has witnessed rapid growth in Takaful Insurance over the past three decades.

“This approach would enable the Commission to identify best practices, gain valuable insights, and adapt strategies that have proven successful in similar markets. By exploring international models and benchmarking against industry leaders, the Commission aims to create a more conducive environment for insurance growth in Nigeria, ultimately benefiting policyholders and stakeholders alike,” part of the statement read.

Omosehin also stressed the importance of knowledge sharing to replicate successful models in Nigeria, particularly in achieving President Bola Tinubu’s vision of a $1tn economy.

The Takaful insurance sub-sector in Nigeria has expanded from a single company in 2013 to six companies currently under the National Insurance Commission’s regulation.

To tap into this potential, the CFI emphasised the need for knowledge sharing and strategic partnerships.

“By learning from Malaysia’s experiences and best practices, Nigeria can accelerate its economic growth and development, ultimately achieving the ambitious goal of a $1tn economy,” he said.

In his response, the Malaysian High Commissioner expressed an enthusiasm for collaboration.

He highlighted Malaysia’s expertise in Takaful insurance, emphasising the potential for bilateral agreements to drive growth in Nigeria’s insurance industry, particularly in the Takaful sector.

Noting NAICOM’s strong interest in developing the industry, the High Commissioner pledged to facilitate connections between Malaysian Takaful insurance companies and Nigerian stakeholders, paving the way for further investment and cooperation.

This partnership could leverage Malaysia’s experience in Takaful insurance, which has been a significant contributor to the country’s Islamic finance sector.

Also, the CFI brought to the Malaysian High Commissioner’s attention the newly passed Insurance Bill by the Senate, which now awaits concurrence from the House of Representatives.

This Bill is expected to significantly boost capital in the insurance industry and create new investment opportunities.

By enhancing the regulatory framework, the Bill seeks to promote the growth and development of the insurance industry in Nigeria, ultimately contributing to the country’s economic growth.

Also, the Malaysian High Commissioner expressed interest in capacity building for NAICOM staff, proposing a training programme led by Malaysian resource personnel, aimed at enhancing the skills and knowledge of NAICOM staff as regulators, ultimately adding value to the Nigerian insurance industry.

According to NAICOM, this aligns with its goals, which include strengthening supervisory capabilities, improving safety and soundness, and fostering innovation and sustainability in the Nigerian insurance industry.

Present at the meeting were the Deputy Commissioner Technical, Mr. Usman Jankara; Deputy Commissioner Finance and Administration, Mr. Ekerete Ola Gam-Ikon; the Director, Legal and Enforcement & Market Development, Dr. Talmis Usman; and others.