Insurance Must Drive Nigeria’s Economic Transformation – NAICOM

The National Insurance Commission (NAICOM) has called for a fundamental repositioning of Nigeria’s insurance industry, as operators moved from a traditional indemnification role to become a strategic driver of economic growth, stability and resilience.

The commissioner for Insurance and chief executive officer of NAICOM, Olusegun Omosehin, made the call in Abeokuta, Ogun State, while delivering the keynote address at the 2026 Insurance Professionals’ Forum organised by the Chartered Insurance Institute of Nigeria (CIIN).

Speaking on the theme, ‘The Economics of Risk: Sustaining a Resilient Insurance Industry’, Omosehin said insurance was far more than a financial service.

“Insurance is far more than financial service. It is a strategic instrument for economic stability. It is the institutional mechanism through which societies transform uncertainty into confidence and convert vulnerability into resilience,” he said.

He said the industry was at a historic inflection point following the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025.

He described the new law as the beginning rather than the conclusion of the industry’s reform journey, stressing that it would demand stronger institutions, enhanced oversight and greater protection for policyholders.

According to him, NAICOM’s regulatory vision is to build a financially sound, professionally driven, technologically enabled, well-governed, and consumer-focused insurance market capable of supporting Nigeria’s economic aspirations.

He listed policyholder protection, financial soundness, corporate governance, market conduct, innovation, insurance inclusion and market stability as key pillars of the Commission’s regulatory philosophy.

On the recently concluded recapitalisation exercise, Omosehin said success should not be measured only by higher capital thresholds.

“Stronger capital bases enable insurers to retain larger risks, settle claims more efficiently, invest in technology and talent, support innovation, participate in major national projects, and compete effectively within regional and global markets,” he said.

He added that the real test would be the emergence of insurers that remain solvent during economic stress, honour obligations during crises, and retain the confidence of policyholders under all circumstances.

Omosehin noted that critical sectors such as agriculture, infrastructure, trade and energy cannot achieve sustainable growth without appropriate insurance protection.

“Agriculture cannot flourish without crop insurance. Infrastructure development cannot proceed sustainably without construction and engineering covers. Trade cannot expand without marine insurance. Credit markets cannot deepen without adequate protection mechanisms,” he said.

The Commissioner identified public trust as the industry’s greatest asset and urged operators to prioritise governance, transparency, and prompt claims settlement.

He also backed the establishment of the Insurance Policyholders’ Protection Fund under NIIRA 2025 as an additional safety net.

On innovation, he said insurers must treat digital transformation as a strategic imperative, leveraging AI, machine learning, blockchain and geospatial intelligence to improve underwriting, claims and fraud detection.

“The future will not necessarily belong to the largest insurers, but increasingly to the most adaptive insurers,” Omosehin stated.