Two Decades Of Reforms Power Nigeria’s Insurance Growth – NAICOM

The National Insurance Commission (NAICOM) has projected strong growth momentum for Nigeria’s insurance market, citing a broad range of reforms implemented over the past two decades.

The Commission said the period from 2005 to 2025 represents one of the most transformative eras in the country’s insurance industry.

Speaking at a book launch to mark the second anniversary of Daily Economy, an online publication in Lagos, the Commissioner for Insurance, Olusegun Ayo Omosehin, said the sector has evolved from a position of fragility to one of greater resilience.

“Prior to this period, the industry faced significant structural challenges, including low capitalisation, weak public confidence, limited product innovation, and very low penetration levels,” Omosehin said.

“However, through deliberate reforms, strategic regulatory interventions, and the contributions of visionary leaders, the industry began a steady journey from fragility to resilience.”

He noted that policy reforms and innovation have significantly enhanced insurance’s relevance in Nigeria’s economy.

According to him, the recapitalisation exercise carried out between 2005 and 2007 marked a critical turning point, strengthening the financial base of operators and laying the foundation for a more stable and credible insurance sector.

“Subsequent milestones, including policy reforms, innovation, and institutional developments, have played a vital role in expanding access, improving financial inclusion, and enhancing the overall relevance of insurance in Nigeria,” he added.

Omosehin said NAICOM has remained committed to creating an enabling regulatory environment that balances innovation with stability.

“We have strengthened supervisory frameworks and introduced policies aimed at protecting policyholders while ensuring the sustainability of operators. Our transition towards risk-based supervision reflects our commitment to aligning with global best practices,” he said.

He emphasised that the insurance industry plays a critical role in economic development by mobilising long-term funds, supporting infrastructure, protecting assets, and providing financial security for individuals and businesses.

However, he stressed that the sector must continue to evolve in response to emerging risks, technological advancements, and changing customer expectations to fully realise its potential.

The Commissioner noted that one of the most significant milestones in the history of our industry, indeed, a central theme captured in this book, is the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

Stressing further, he said, the NIIRA 2025 represents a bold and forward-looking transformation of the legal and regulatory framework governing insurance in Nigeria. It is not just a reform; it is a comprehensive redefinition of how the industry operates, competes, and delivers value.

According to him,For many years, the industry operated under legacy laws that, while foundational, had become insufficient in addressing the complexities of a modern and rapidly evolving financial ecosystem. NIIRA 2025 was therefore designed to close these gaps and position Nigeria’s insurance sector for greater efficiency, resilience, and global relevance.

Specifically speaking, Omosehin, explained that NIIRA 2025 significantly enhances the authority of NAICOM to enforce compliance, supervise operators more effectively, and take decisive regulatory actions where necessary. This ensures a more disciplined, transparent, and accountable industry.

At the heart of the reform is the protection of policyholders. The Act introduces stronger mechanisms to ensure prompt claims settlement, fair treatment of customers, and improved dispute resolution frameworks.

One of the longstanding challenges in Nigeria has been the weak enforcement of compulsory insurance policies. NIIRA 2025 provides stronger legal backing to drive compliance, ensuring that insurance fulfils its social protection role.

The Act recognises the growing importance of technology in insurance delivery. It creates room for innovation, including insurtech operations, digital distribution channels, and new product development.

He also pointed out that the NIIRA 2025 reinforces governance standards across the industry, ensuring that operators adhere to best practices in transparency, accountability, and ethical conduct.

The reform introduces provisions that strengthen insurance companies’ financial resilience, ensuring they are better positioned to meet obligations and withstand economic shocks.

The Commissioner also said the implications of NIIRA 2025 are far-reaching.

For operators, it demands a higher level of professionalism, stronger risk management practices, and a deeper commitment to innovation.

For regulators, it provides the tools required to ensure a more efficient and effective supervisory environment.

For policyholders, it offers renewed confidence that their interests are adequately protected.

And for the Nigerian economy, it positions the insurance sector as a more significant contributor to economic growth and national development.

The Commissioner however noted that the success of NIIRA 2025 will depend on the collective commitment of all stakeholders, regulators, operators, intermediaries, policymakers, and the media.

“We must embrace this reform not as a regulatory burden, but as an opportunity to transform the industry into a more vibrant, inclusive, and globally competitive sector.” he added.