NAICOM, others seek sector reformation with actuaries

In a quest to upgrade the standard of insurance practice in Nigeria, the National Insurance Commission (NAICOM) has revealed plans to raise 100 actuarial analysts in the next five years.

The actuarial analysts, according to the commission, would help to enhance the growth of the insurance sector.

Actuarial analysts are experts who work in the insurance industry using statistical models to analyse data and calculate the probability of and cost associated with certain events, such as product failure, accidents, property damage, injury, and death. They use the results to design and price insurance policies.

The Acting Commissioner for Insurance, Sunday Thomas, disclosed this at a workshop organised by the commission in partnership with the College of Insurance and Financial Management (CIFM), in Lagos.

He said NAICOM and the college had offered to sponsor and prepare insurance professionals, who are interested in writing an international examination on Actuarial management.

According to him, the initiative was aimed at developing the necessary professional skills set and talents to drive the insurance sector.

Thomas said all expenses of the course and examination would be fully funded by the commission and offered at no cost to the selected participants.

“Part of our plans is that within the next five years, we want to produce at least 100 Certified Actuarial Analyst and we will take responsibility for the commitment.

“We must analyse our job, role and the need to change our focus on how to develop the market and ensure compliance with regulatory policies.

“Part of the development is human capital development, as the growth potential of the industry is built on the capacity to have the required capital that will drive it forward.

“The issue of measuring and taking the necessary step for effective pricing has made the Actuarial profession to be more pertinent more than ever before.

“There is a need to develop young professionals and give them a future in the insurance industry and we are determined to develop their potentials and make them relevant to the sector,” he said.

The expert pointed out that only some of the insurance companies have an in-house Actuaries and why the commission has intervened to stem the tide.

Thomas explained that Actuaries were also needed to manage the annuity business, which was becoming quite a significant and almost accounting to 35 to 40 per cent in the industry portfolio with an output of 10 trillion.

He urged the potential beneficiaries to be committed to the programme to succeed, stating that the commission would only give candidates the opportunity to rewrite a failed course twice.

“This programme requires sharp, determined, qualitative minded and serious individuals, so think critically about it before opting for it.

“We are ready to give you all the necessary support and will persuade the Chief Executive Officers of the insurance companies to give the candidates adequate time to study,” he said.

Thomas also noted that the NAICOM Academy would kick-off operation within the year in Abuja, to train and empower its in-house staff.

Also speaking, the Rector, CIFM, Yeside Oyetayo, commended NAICOM for offering a full scholarship for the programme as a way of giving back to the industry.

Oyetayo said the processes for the programme commences immediately and the college would be developing an Actuarial development policy in collaboration with the Nigeria Actuarial Society (NAS) to train the candidates home-based.