Integrate Insurance Into Poverty Reduction Programmes, NAICOM Urges States

The National Insurance Commission (NAICOM) has appealed to state governments to incorporate insurance coverage into their various social intervention and economic empowerment initiatives. NAICOM stressed that such a move would safeguard beneficiaries and protect public investments from unforeseen losses.

The insurance regulator noted that many state-sponsored programmes are designed to support entrepreneurs, farmers, artisans and small-scale business operators through loans, grants, agricultural inputs, equipment and other forms of financial assistance aimed at improving livelihoods and stimulating economic activity.

According to the commission, the initiatives often face challenges when beneficiaries encounter unexpected setbacks, such as natural disasters, fires, accidents, theft, health emergencies, or the death of business owners.

Commissioner for Insurance, Olusegun Ayo Omosehin, made the call at the 2026 Chief Executive Officers’ Retreat of the Nigerian Council of Registered Insurance Brokers (NCRIB) in Abia State.

NAICOM maintained that embedding insurance into government-backed intervention schemes would provide a layer of financial protection, enabling affected individuals and businesses to recover more quickly from adverse events.

This, it said, would help sustain economic activity and reduce the likelihood that government resources invested in such programmes would be lost.

The commissioner explained that insurance serves as a critical risk-management tool that helps preserve both public funds and the gains achieved through poverty reduction and empowerment programmes.

The national commissioner underscored the need for stronger protection mechanisms for vulnerable members of society.

He said integrating insurance into state intervention programmes would strengthen their effectiveness by ensuring beneficiaries are not left financially exposed in the event of unexpected incidents.

Omosehin observed that economic empowerment initiatives are more likely to deliver sustainable outcomes when participants have access to insurance protection, as businesses and livelihoods can recover faster from losses and continue contributing to local economic growth.

He emphasised that building resilient communities requires collaboration among governments, financial institutions and insurance operators, adding that insurance remains one of the most reliable instruments for managing risks and mitigating the impact of economic shocks.

Describing the broader value of insurance, the Commissioner said it goes beyond being a financial service and serves as a mechanism that provides security, stability and confidence for individuals, businesses and governments alike.

He noted that insurance offers an organised framework through which people and institutions can cope with unforeseen events and restore financial stability after disruptions.

In addition to advocating insurance-backed social intervention programmes, NAICOM also encouraged state governments to strengthen enforcement of compulsory insurance policies stipulated under existing laws, noting that improved compliance would deepen insurance penetration and enhance financial protection across the country.