The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Ayo Omosehin, has charged operators in Nigeria’s insurance industry to embrace customer-focused reforms, deepen public trust, and leverage digital innovation to accelerate insurance penetration and economic growth.
Speaking at the opening ceremony of Insurance Week 2026, Omosehin said the future of the insurance industry depends largely on its ability to reconnect with Nigerians through transparency, financial literacy, simplified products, and efficient claims settlement processes.
Represented by the Deputy Commissioner for Insurance, Finance and Administration, Mr Ekerete Ola Gam-Ikon, the NAICOM chief described Insurance Week as more than a ceremonial gathering, noting that the annual event has evolved into a strategic platform for industry reflection, stakeholder engagement, and policy direction.
According to him, the industry must urgently address the persistent trust deficit that continues to limit insurance penetration despite the critical role insurance plays in economic stability and risk management.
Public Trust Remains Industry’s Biggest Challenge
Omosehin noted that public awareness and understanding remain the foundation of sustainable growth in any insurance market, stressing that low insurance literacy continues to undermine consumer confidence in Nigeria.
“Without awareness, there can be no demand. Without understanding, there can be no trust. And without trust, sustainable growth cannot be achieved,” he declared.
He explained that many Nigerians still struggle to understand insurance products, policy terms, claims procedures, and the overall benefits of insurance coverage, creating a disconnect between insurers and potential customers.
The NAICOM boss urged operators to rethink their communication strategies and adopt more practical, relatable, and consumer-friendly approaches capable of reaching everyday Nigerians in languages and formats they understand.
According to him, awareness campaigns must move beyond generic messaging and focus on real-life experiences that demonstrate how insurance protects lives, businesses, assets, and livelihoods.
“It is not enough for people to simply know that insurance exists—they must understand how it works, why it matters, and how it can protect their lives, assets, and aspirations,” he said.
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He disclosed that NAICOM has continued to champion financial literacy and consumer education initiatives through strategic collaborations, innovative communication platforms, and stakeholder engagements targeted at underserved communities, small businesses, and emerging sectors of the economy.
Insurers Told to Shift from Product Selling to Problem Solving
Omosehin criticised the longstanding perception that insurance firms design products without adequately considering the real needs of policyholders.
He said the industry must move away from a product-centric model to a customer-centric framework where clients are actively involved in product conception, design, and delivery.
According to him, products become more acceptable and trusted when customers contribute to the development process.
“When clients are actively engaged in product design, products become more relevant and accessible, pricing structures become more acceptable, and trust and ownership are significantly enhanced,” he stated.
He further urged insurers to create products that support strategic sectors such as agriculture, infrastructure, and Micro, Small and Medium Enterprises (MSMEs), noting that such alignment would not only deepen insurance penetration but also contribute meaningfully to Nigeria’s economic development agenda.
Claims Settlement Still the “Moment of Truth”
The NAICOM Commissioner identified claims settlement as one of the biggest determinants of public confidence in insurance.
Describing claims processing as the industry’s “moment of truth,” Omosehin warned that delays, poor communication, and perceived unfairness in claims handling continue to weaken confidence in the sector.
He called on insurers to simplify policy documentation and improve policyholders’ understanding of claims procedures, timelines, and documentation requirements.
According to him, every interaction between insurers and policyholders shapes public perception of the industry.
“Every policy issued, every claim settled, and every client interaction contributes to the public perception of our industry,” he added.
NIIRA 2025 Marks New Era for Insurance Industry
Speaking on ongoing reforms, Omosehin described the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as a landmark legislation that could redefine the future of insurance in Nigeria.
He explained that the law introduces comprehensive reforms aimed at strengthening corporate governance, improving regulatory oversight, enhancing capital requirements, and boosting consumer protection.
One of the major highlights of the legislation, according to him, is the establishment of the Insurance Policyholders’ Protection Fund, which is designed to protect policyholders in cases of insurer distress or insolvency.
“This is a critical development because confidence in any insurance market depends on the assurance that policyholders’ interests are protected under all circumstances,” he noted.
The NAICOM boss added that the reform framework would also promote operational efficiency, transparency, innovation, and market expansion while aligning Nigeria’s insurance industry with global best practices.
However, he cautioned that reforms alone would not guarantee transformation unless stakeholders remain committed to implementation and accountability.
“The true impact of NIIRA 2025 will depend on how effectively we implement its provisions and sustain the momentum of reform,” he said.
Technology, Insurtech to Drive Future Growth
Omosehin identified digital transformation as another critical pillar for the future of the industry, stressing that insurtech solutions can improve efficiency, customer experience, onboarding, claims management, and risk assessment.
He said technology also presents opportunities to expand insurance access to rural communities and underserved populations.
However, he warned that digital innovation must be pursued responsibly with strong attention to cybersecurity, ethical standards, and data privacy protection.
He also emphasised the need for inclusiveness to ensure vulnerable groups and informal sector participants are not excluded from the benefits of digital transformation.
Industry at a Defining Crossroad
The NAICOM chief described the current moment as a defining period for Nigeria’s insurance industry, urging operators to embrace accountability, collaboration, innovation, and reform.
“The future of Nigeria’s insurance industry rests in our hands as practitioners. We stand at a defining crossroad—a moment charged with opportunity and responsibility,” he stated.
He urged stakeholders to move beyond discussions during Insurance Week 2026 and focus on practical implementation capable of rebuilding trust and repositioning the industry for long-term growth.
Omosehin reaffirmed that Nigeria’s insurance sector has the potential to become a major catalyst for economic development if operators sustain reform momentum and build a more inclusive, transparent, and globally competitive industry.
NAICOM Commissioner Olusegun Ayo Omosehin says Nigeria’s insurance industry must rebuild trust, embrace customer-centric reforms, improve claims settlement, and leverage digital innovation to drive growth at Insurance Week 2026.
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