NAICOM Unveils Bold Reform Agenda, Tasks Insurers to Rebuild Trust

As Ebelechukwu Nwachukwu Makes History as NIA’s First Female Chairman, Omosehin Says Stronger Capital, Innovation and Consumer Confidence Will Drive Nigeria’s $1 Trillion Economic Vision

Nigeria’s insurance industry has reached a historic crossroads, with the National Insurance Commission (NAICOM) declaring that the sector is no longer struggling for recognition but is now strategically positioned to become one of the country’s strongest pillars for economic resilience, financial inclusion and sustainable national development.
Delivering a far-reaching policy address at the investiture ceremony of Mrs. Ebelechukwu B. Nwachukwu as the 27th Chairman—and the first woman ever to lead the Nigerian Insurers Association (NIA)—the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, outlined an ambitious roadmap that places trust, stronger capitalisation, digital innovation and effective regulation at the heart of the industry’s transformation.
His speech, widely regarded by industry stakeholders as a blueprint for the next phase of insurance development in Nigeria, comes at a time when the Federal Government is intensifying reforms across the financial services sector to support President Bola Ahmed Tinubu’s ambition of building a $1 trillion economy by 2030.
Historic Leadership for a New Era
Omosehin described Mrs. Nwachukwu’s emergence as both symbolic and strategic, noting that her appointment represents not only a breakthrough for gender inclusion but also the arrival of an experienced industry leader at a defining moment in Nigeria’s insurance evolution.
He praised her decades of technical expertise, institutional leadership and reputation for excellence, expressing confidence that she possesses the capacity to unite industry operators around a common reform agenda.
“This is your moment. This is our moment,” the Commissioner declared, urging the new NIA Chairman to lead an industry-wide transformation anchored on professionalism, innovation and customer confidence.
The Commissioner also paid glowing tribute to the immediate past Chairman of the Association, Mr. Kunle Ahmed, whose tenure he credited with strengthening collaboration between operators and regulators, particularly during the successful passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
According to Omosehin, Ahmed’s contributions have laid a solid institutional foundation upon which the industry can now build a globally competitive insurance market.
NIIRA 2025 Changing the Industry’s Future
At the centre of NAICOM’s transformation agenda is the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which Omosehin described as the most comprehensive legal reform in decades.
He explained that the landmark legislation has fundamentally redefined insurance regulation by introducing risk-based supervision, strengthening consumer protection through the Policyholders Protection Fund and providing regulators with stronger tools to ensure financial stability and market discipline.
“Twelve months ago, President Bola Ahmed Tinubu signed NIIRA 2025 into law. That legislation changed everything. It gave us a modern legal framework to rebuild the industry, strengthen governance and restore public confidence,” he said.
Industry analysts believe the reforms could significantly improve investor confidence, reduce systemic risks and enhance Nigeria’s capacity to retain more high-value risks that are currently ceded to foreign insurance markets.
Recapitalisation to Produce Stronger Insurance Companies
Beyond legislative reforms, Omosehin revealed that the ongoing industry recapitalisation programme has recorded encouraging progress ahead of the July 31, 2026 deadline.
He disclosed that many insurance companies have already met—and in several cases exceeded—the new Minimum Capital Requirement (MCR), describing the exercise as a strategic initiative designed to strengthen underwriting capacity rather than merely increase shareholders’ funds.
“This is recapitalisation for capacity, for retention and for credibility,” Omosehin stated.
According to him, stronger balance sheets will enable Nigerian insurers to underwrite larger and more sophisticated risks within the country, thereby reducing dependence on offshore insurers and increasing domestic value retention.
He further noted that a financially stronger insurance industry is indispensable to Nigeria’s aspiration of becoming a $1 trillion economy, providing the resilience required to support major infrastructure projects, energy investments, aviation, marine business and industrial expansion.
Trust, Not Capital, Remains the Industry’s Biggest Challenge
Perhaps the strongest message from the Commissioner’s address was his candid assessment that Nigeria’s insurance industry’s greatest obstacle is not inadequate capital but insufficient public trust.
“Our biggest deficit is not capital. It is trust,” he declared.
He challenged insurance operators to institutionalise prompt claims settlement, improve customer communication and compete through superior service delivery rather than aggressive pricing.
The Commissioner urged insurers to voluntarily publish claims settlement ratios as a demonstration of transparency and accountability, arguing that rebuilding confidence remains essential to expanding insurance penetration across Nigeria.
Compulsory Insurance Compliance Still Weak
Despite existing laws covering six classes of compulsory insurance, Omosehin lamented that national compliance remains below 30 per cent.
He therefore called for stronger collaboration between NAICOM, the Nigerian Insurers Association, state governments, the Federal Road Safety Corps (FRSC), the Nigeria Police Force and other enforcement agencies to ensure full implementation of compulsory insurance laws.
According to him, effective enforcement will not only grow premium income but also protect public assets, safeguard lives and strengthen national economic resilience.
Innovation Will Determine the Industry’s Future
The Commissioner maintained that digital transformation must become the industry’s next growth frontier.
He identified embedded insurance, microinsurance, Takaful, climate-risk products and agricultural parametric insurance as critical innovations capable of bringing millions of previously uninsured Nigerians into the formal financial system.
With insurance penetration still below one per cent, Omosehin urged operators to leverage NAICOM’s Regulatory Sandbox to develop affordable, technology-driven products tailored to farmers, traders, artisans, small businesses and households.
He stressed that the future of insurance lies in meeting customers where they live, work and transact digitally rather than relying solely on conventional distribution channels.
A Charge to the New NIA Leadership
Addressing Mrs. Nwachukwu directly, Omosehin challenged the new Chairman to unite the market, elevate professional standards and expand insurance access to over 100 million Nigerians who currently have little or no insurance protection.
He urged the Association to build a unified industry voice capable of driving ethical conduct, operational excellence and sustainable market expansion.
“Competition must not become fragmentation. Our transformation requires one voice, one standard and one purpose,” he said.
A Defining Moment for Nigeria’s Insurance Industry
Omosehin concluded by describing the current phase as one of the most consequential periods in the history of Nigeria’s insurance sector.
He argued that while legislation and recapitalisation have laid the structural foundation for reform, the ultimate success of the industry will depend on the commitment of operators to deliver value, uphold ethics and earn the confidence of millions of Nigerians.
“Let history record that when the foundation was laid, we rose to build,” he declared, assuring the new NIA leadership of NAICOM’s unwavering support as the industry embarks on what many stakeholders believe could become the most transformative chapter in its history.
NAICOM Commissioner for Insurance Olusegun Ayo Omosehin unveils a bold reform agenda for Nigeria’s insurance industry, highlighting recapitalisation, NIIRA 2025, digital innovation, trust, stronger regulation and expanded insurance penetration during the historic investiture of Mrs. Ebelechukwu Nwachukwu as the first female Chairman of the Nigerian Insurers Association.
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