The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, has reaffirmed the Commission’s commitment to delivering a transparent, technology-driven and globally aligned implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, describing the legislation as a transformative roadmap for strengthening the sector and supporting Nigeria’s long-term economic ambitions.

Speaking through Dr. Usman Jankara, Deputy Commissioner for Insurance, at the EY Insurance Summit on NIIRA 2025 held on November 27, 2025, at the Radisson Blu Anchorage, Lagos, Omosehin said the reform Act signals a decisive shift in the regulatory landscape as Nigeria works toward achieving a $1 trillion GDP target by 2030.

He noted that NIIRA 2025 provides the stability, innovation and global competitiveness required to reposition the insurance industry as a pivotal economic pillar.

Significant Regulatory Milestones Since NIIRA’s Enactment

Omosehin outlined major actions taken by NAICOM to ensure clarity and orderly execution:

Strengthened Recapitalisation Framework

• Issuance of key Guidelines and Circulars detailing compliance timelines, admissible assets and liabilities under the Minimum Capital Requirement (MCR).
• All insurers and reinsurers have submitted recapitalisation plans ahead of the September 30 deadline.
• Monthly progress reporting is now compulsory.

Enhanced Regulatory Oversight

A dedicated Recapitalisation Committee now monitors operator compliance, reviews statutory returns and engages stakeholders.

Independent Capital Verification

To uphold transparency, NAICOM partnered with the Big Four audit firms — including EY — for independent verification of insurers’ capital positions.

Omosehin described the verification process as the “airport scanner” through which every insurer must pass to confirm MCR compliance.

Escrow Protection for Policyholders

All recapitalisation funds must be deposited into CBN-supervised escrow accounts, a move designed to strengthen governance and safeguard policyholder interests.

More Guidelines to Drive Reform

Additional regulatory instruments have been issued or circulated as exposure drafts, including:

• Reinsurance guidelines
• Registration and renewal protocols
• Foreign health insurance and reinsurance standards
• Product development guidelines
• Fit-and-proper requirements for principal officers

Upcoming guidelines will focus on claims management, Takaful operations and microinsurance.

Industry Response and Progress

The Commissioner disclosed that several insurers have indicated readiness for capital verification, with many adopting new strategies for capital infusion, mergers, acquisitions and operational restructuring.

NAICOM has concluded reviews of recapitalisation plans and issued individual feedback to industry players.

Challenges and NAICOM’s Strategic Posture

Omosehin acknowledged existing hurdles, including:

• Merger and acquisition complexities
• Inflation and FX volatility affecting capital mobilisation
• Capacity gaps in underwriting and risk management

He maintained that NAICOM remains guided by a principle-based regulatory philosophy that balances clarity, innovation and systemic safety.

Strategic Priorities Beyond Compliance

Omosehin emphasized that the Commission’s long-term vision extends beyond meeting MCR deadlines. The focus areas include:

1. Deep Digital Transformation

Harnessing Insurtech, AI-driven analytics, IoT-enabled risk prevention and seamless digital service delivery.

2. ESG Integration

Embedding environmental, social and governance principles into underwriting and investment decisions to attract responsible global capital.

3. Leveraging AfCFTA

Strengthening balance sheets to compete across borders and underwrite large-scale regional infrastructure and trade risks.

4. Data and Actuarial Development

Building local risk models to address emerging threats such as climate change, cyber risk and public health crises.

IFRS 17 and Transition to Risk-Based Capital

Omosehin said the implementation of IFRS 17 introduces new valuation complexities, making actuarial expertise vital.

He disclosed that NAICOM is concluding arrangements to engage an actuary to support:

• Liability valuation
• Pricing of compulsory insurance
• RBC readiness
• Regulatory data and analytics

He also confirmed that the Risk-Based Capital (RBC) Framework is complete and will soon be re-exposed for stakeholder review, with implementation to commence after the MCR exercise and the licensing of compliant operators.

Clear Expectations for Stakeholders

The Commissioner outlined regulatory expectations across the insurance ecosystem:

Insurers & Reinsurers

• Full adherence to MCR timelines
• Transparent and timely reporting
• Strong internal risk management
• Commitment to prompt claims settlement

Actuarial & Advisory Firms

• Support IFRS 17 adoption
• Maintain integrity and independence in capital verification
• Strengthen risk-based pricing and liability valuation
• Promote best governance practices

Brokers, Technology Firms & Investors

• Innovate distribution channels
• Invest in Insurtech
• Deepen insurance penetration and financial inclusion

A Call to Collective Action

Omosehin urged industry leaders to embrace NIIRA 2025 as a shared commitment to resilience, trust and innovation.

“Compliance is only the starting point,” he said. “This is a strategic opportunity to rewrite the future of insurance in Nigeria and across Africa. NAICOM stands ready to collaborate, guide and ensure sustainable growth for the industry.”

NAICOM Commissioner Olusegun Ayo Omosehin outlines bold reforms and strict NIIRA 2025 implementation at the EY Insurance Summit, highlighting recapitalisation progress, digital transformation, ESG priorities and the transition to risk-based capital as Nigeria targets a $1 trillion economy.