NAICOM Boss: Insurance Offers Better Financial Security Than Medical Crowdfunding, Urges Nigerians to Embrace Coverage

Omosehin: Bridging Nigeria’s Insurance Gap for Financial Stability

Despite Nigeria’s vast population exceeding 200 million, insurance penetration remains at a mere 1%. Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Omosehin, is leading the charge to change this narrative, advocating for greater adoption of insurance as a reliable safety net compared to medical crowdfunding and other informal financial support systems.

In a recent interview on Channels Television’s News Night, Omosehin highlighted the immense potential of Nigeria’s insurance sector, which is experiencing double-digit growth. However, he pointed out significant barriers—cultural norms, lack of awareness, and public mistrust—hindering widespread adoption.

“For many Nigerians, when emergencies arise, the default response is to seek financial support from family, friends, or community groups. While this may seem effective, it’s an unsustainable burden. Imagine contributing ₦50,000 multiple times a year for different causes—if that same amount were invested in an insurance policy, it would provide broader and more reliable coverage,” Omosehin explained.

The Need for Reform and Consumer Protection

Omosehin emphasized the importance of the ongoing 2024 Insurance Reform Bill, which, once passed, would enhance regulatory oversight and consumer protection. He reassured Nigerians that NAICOM is enforcing stricter compliance measures to ensure insurance companies honor claims promptly.

“As regulators, our mission is clear: find reasons to pay claims, not deny them. We have zero tolerance for non-settlement of genuine claims,” he stated, underscoring NAICOM’s commitment to restoring public confidence in the industry.

Insurance as a Growth Driver

With global insurance penetration averaging 7%, Omosehin believes Nigeria has significant room for expansion, particularly in micro-insurance, takaful (Islamic insurance), and cyber insurance. He urged businesses and individuals to recognize insurance as a fundamental economic enabler, providing financial stability and risk mitigation.

“The corporate sector—oil and gas, aviation, manufacturing—is already leveraging insurance effectively. Now, our focus is on integrating the wider population into this safety net,” he noted.

As Nigeria grapples with economic uncertainties and rising healthcare costs, Omosehin’s message is clear: embracing insurance is not just a financial decision but a critical step toward long-term security and resilience.

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