The Nigerian insurance industry has been urged to demonstrate that the N1.079 trillion raised through recapitalization can translate into stronger underwriting capacity, faster claims settlement, innovation, and greater public confidence. This call was made by the Commissioner for Insurance/Chief Executive of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, and Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, at the BusinessDay Insurance Conference 2026 in Lagos.
The conference, themed "From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria’s Insurance Sector," provided a platform for industry stakeholders to examine the next phase of the sector following the completion of the recapitalization exercise under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. Omosehin emphasized that recapitalization should not be regarded as an achievement in itself, but rather as a means to strengthen the industry's capacity to serve policyholders and support Nigeria's economic development.
According to Omosehin, the industry must now assess whether the additional capital has strengthened underwriting, improved claims-paying ability, enhanced customer satisfaction, and increased public confidence. He noted that Nigeria's growing population, expanding infrastructure, entrepreneurial economy, digital economy, agricultural opportunities, and emerging middle class offered enormous opportunities for insurers, but operators must have the capacity to take advantage of them.
Mrs. Nwachukwu agreed that recapitalization was only the beginning, saying the industry must now demonstrate its value to policyholders. She asked whether businesses would now find it easier to insure larger risks locally, whether families would experience faster and fairer claims settlement, and whether Nigerians outside the traditional insurance market would begin to see insurance as relevant to their lives.
The recapitalization exercise has produced an industry with capital in excess of N1.079 trillion, with 50 insurance and reinsurance companies successfully meeting the new capital requirements. The exercise has also attracted domestic and foreign investment, reflecting investor interest in a stronger regulatory environment and the growth opportunities in the sector. However, Nwachukwu cautioned operators against allowing stronger balance sheets to encourage undisciplined growth.
Both Omosehin and Nwachukwu identified innovation as critical to expanding the market. They urged insurers to deploy data analytics, artificial intelligence, and digital platforms responsibly to simplify insurance, improve service delivery, and develop affordable products. The two speakers also converged on the issue of trust, describing it as the "invisible foundation" and "the currency of our industry."
The industry's next chapter should be measured by its ability to convert capital into capacity, capacity into innovation, and innovation into trust. Omosehin and Nwachukwu emphasized the importance of collective responsibility, with regulators providing oversight, insurers driving innovation and operational excellence, and the media continuing to educate the public. The NIA Chairman urged stakeholders to ensure that the opportunities created by NIIRA were not lost to complacency, saying the next phase required disciplined execution and collaboration among industry players.
Key points
- The Nigerian insurance industry has raised N1.079 trillion through recapitalization.
- The industry must now demonstrate its value to policyholders through stronger underwriting capacity, faster claims settlement, innovation, and greater public confidence.
- Trust has been identified as a critical component of the insurance industry, with both regulators and industry players emphasizing its importance in driving growth and innovation.
