Nigeria’s insurance industry is entering a new phase following the completion of its recapitalisation exercise, but the National Insurance Commission (NAICOM) has made clear that stronger balance sheets must now translate into better conduct, stronger consumer protection and greater public confidence.
The Commissioner for Insurance, Mr. Olusegun Omosehin, gave the warning in Abuja at the launch of the Insurance Sector Strengthening Programme (ISSP), where he urged operators to maintain strict compliance with prudential requirements and ethical standards.
According to Mr. Omosehin, recapitalisation is important to the long-term strength of the industry, but its objectives will not be achieved if insurers fail to maintain sound underwriting practices, strong corporate governance and transparent operations.
“As regulator, NAICOM will continue to create an enabling environment for innovation, but this commitment must be matched by strict adherence to prudential standards, ethical conduct, fair treatment of customers, and timely settlement of genuine claims,” he said.
The commissioner stressed that the regulator would not allow the pursuit of market expansion or technological innovation to weaken the safeguards protecting policyholders.
“Innovation will be encouraged, but not at the expense of consumer protection. Market expansion will be supported, but not at the expense of solvency, transparency, or public trust,” he said.
His position places consumer confidence at the centre of the industry’s next phase. For an insurance market seeking deeper penetration, the ability of operators to demonstrate reliability when claims arise remains critical to convincing more individuals and businesses to take up insurance products.
Mr. Omosehin said the ISSP would provide a platform for regulators, insurers, intermediaries, technology providers, development partners and consumers to work together towards a stronger market.
He identified responsible underwriting, adequate capitalisation, sound corporate governance, transparent operations, prompt claims settlement and measurable value for policyholders as essential foundations for sustainable growth.
“NAICOM will continue to engage, support, and guide the industry; but we will also insist that every operator earns public confidence through compliance, professionalism, and service excellence,” he said.
The commissioner said NAICOM’s mandate extends beyond supervision of individual operators to protecting policyholders, preserving market stability, enforcing sound market conduct and promoting the orderly development of the industry.
He cautioned that regulation alone could not deliver sustainable growth, just as expansion without discipline, transparency and accountability would not serve the public interest.
The ISSP comes against the backdrop of rapid changes in the financial services environment, with technology reshaping how products are designed, distributed and consumed.
Mr. Omosehin said insurance companies must respond to changing customer expectations, particularly the growing demand for convenience, transparency and personalised services.
“Customers now expect convenience, transparency, and personalised solutions. In this environment, the insurance industry must embrace innovation as a necessity,” he said.
He stated that digital platforms, insurtech solutions and data-driven approaches would be important in improving the competitiveness of Nigeria’s insurance market.
“The integration of digital platforms, insurtech solutions, and data-driven approaches under the ISSP framework will help position the Nigerian insurance market for greater competitiveness in an increasingly digital economy,” he said.
The programme is designed around six pillars: Advocacy and Policy; Awareness and Education; Capacity Building; Gender Inclusion; Youth Engagement; and MSME and Value Chain Development.
These areas reflect an attempt to address some of the structural barriers limiting the reach and impact of insurance in Nigeria. Greater public awareness can improve understanding of insurance products, while stronger professional capacity and digital adoption can improve service delivery.
The focus on gender, youth and MSMEs also broadens the conversation beyond traditional insurance markets. Small businesses, young entrepreneurs and underserved groups represent a significant opportunity for insurers seeking to expand coverage and deepen penetration.
Mr. Omosehin described the ISSP as a landmark initiative aimed at making the insurance industry more inclusive, innovative, resilient and trusted.
With recapitalisation now completed, the industry faces a different test. The question is no longer only whether insurers have sufficient capital to operate. It is whether that stronger financial foundation can produce better services, faster claims settlement, responsible innovation and greater confidence among the Nigerians the industry is expected to serve.
