NAICOM, partners Malaysia to drive Takaful Insurance in Nigeria

The National Insurance Commission (NAICOM) and the government of Malaysia have agreed to collaborate to facilitate knowledge sharing and capacity building to drive Takaful insurance in the country. Mr Olusegun Omosehin, the Commissioner for Insurance (CFI), said this when Aiyub Omar, the High Commissioner of Malaysia to Nigeria, visited him in Abuja on Friday. Omosehin said that the country could accelerate its economic growth and development by tapping into Malaysia’s experiences and best practices in Takaful insurance. He said that the country could ultimately achieve the ambitious goal of a one trillion-dollar economy through such a partnership. The CFI said that studying countries with similar characteristics, such as Malaysia, which had witnessed rapid growth in Takaful insurance over the past three decades, would enable the commission to identify best practices and gain valuable insights.
According to him, the partnership will also help the commission adopt 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. The newly passed insurance bill by the Senate, which now awaits concurrence from the House of Representatives, 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,” the CFI said. On his part, Omar emphasised the potential for bilateral agreements to drive growth in Nigeria’s insurance industry, particularly in the Takaful sector. The High Commissioner pledged to facilitate connections between Malaysian Takaful insurance companies and Nigerian stakeholders to encourage 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,” Omar said. The Malaysian High Commissioner expressed interest in capacity building for staff of NAICOM, proposing a training programme led by Malaysian resource personnel. This programme, he said, would enhance the skills and knowledge of NAICOM staff as regulators while adding value to the Nigerian insurance industry. Takaful is an Islamic insurance policy where members contribute money into a pool system to guarantee each other. Takaful-branded insurance is based on Sharia or Islamic religious law and covers health, life, and general insurance needs. Any claims made by participants are paid out of the Takaful fund. #The National Insurance Commission (NAICOM) and the government of Malaysia have agreed to collaborate to facilitate knowledge sharing and capacity building to drive Takaful insurance in the country.