By Ahmed Ahmed
The Nigerian insurance industry has entered a critical phase where stronger capital, regulatory reforms and improved market confidence must translate into greater public trust and wider insurance penetration, the National Insurance Commission (NAICOM) has said.
The Commissioner for Insurance, NAICOM, Mr Olusegun Ayo Omosehin, gave the charge to the Nigerian Insurers Association (NIA), urging the umbrella body of insurance companies to take the lead in rebuilding confidence among Nigerians who have historically viewed insurance with scepticism.
Mr. Omosehin spoke in Lagos during the investiture ceremony of Mrs. Ebelechukwu Nwachukwu as the 27th Chairman of the NIA, making her the first woman to occupy the position since the association was established.
He described Mrs. Nwachukwu’s emergence as historic, coming at a time when the industry is undergoing major structural reforms following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the ongoing recapitalisation exercise expected to conclude on July 31, 2026.
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According to him, the reforms have provided the foundation for a stronger insurance sector, but the responsibility now rests on industry leadership to convert regulatory changes into improved services and increased confidence among policyholders.
“The foundation is set. NIIRA 2025 gave us the legal framework. Recapitalisation is giving us stronger, better capitalised institutions. Now, leadership must build,” Mr. Omosehin said.
The commissioner identified trust, enforcement and innovation as three critical areas where the new NIA leadership must focus to reposition the industry and expand its contribution to Nigeria’s economy.
He stressed that rebuilding public confidence must begin with improving claims management, noting that insurers must make prompt and transparent claims settlement a defining feature of the industry.
“Leadership in trust means making claims excellence a market-wide culture. Publish claims ratios and compete on service,” he stated.
For an industry that has struggled with public perception challenges, especially around delayed claims settlement and limited awareness, Mr. Omosehin said insurers must demonstrate value by ensuring that policyholders experience the benefits of insurance when they need it most.
Beyond improving customer experience, he urged the NIA to strengthen collaboration with government institutions and law enforcement agencies to ensure compliance with Nigeria’s six compulsory insurance classes.
The commissioner also highlighted innovation as a major pathway to expanding insurance coverage, particularly through digital platforms, microinsurance, Takaful and parametric insurance products.
Nigeria’s insurance penetration remains among the lowest globally, with coverage estimated at less than one per cent of the population. Mr. Omosehin challenged the industry to develop solutions capable of reaching millions of Nigerians currently excluded from formal insurance protection.
“Unite the market, raise the bar, and expand the pie by taking insurance to the over 100 million Nigerians who have never owned a policy,” he told the new NIA Chairman.
The emergence of Mrs. Nwachukwu comes at a significant moment for the industry as operators prepare for a new regulatory environment shaped by NIIRA 2025. The reform law and recapitalisation exercise are expected to strengthen insurers’ financial capacity, improve corporate governance and enhance their ability to underwrite larger risks.
However, industry analysts have consistently noted that stronger balance sheets alone may not be enough to transform insurance adoption. Building consumer confidence, simplifying insurance products and improving accessibility will remain essential to achieving sustainable growth.
Mr. Omosehin reaffirmed NAICOM’s commitment to risk-based supervision, stronger governance standards and consumer protection under the new regulatory framework.
