The National Insurance Commission (NAICOM) has set new expectations for insurers in Nigeria following the completion of the industry's recapitalisation exercise. According to Olusegun Ayo Omosehin, commissioner for insurance/CEO of NAICOM, the focus must now shift from the amount of capital raised to the capacity it creates for stronger underwriting, claims payment, innovation, and customer service.
Omosehin made the remarks at the 2024 BusinessDay Insurance Conference, with the theme: ‘From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria’s Insurance Sector’. The conference brought together regulators and industry stakeholders to discuss priorities for the sector after recapitalisation. He said the industry must now demonstrate what the additional capital is accomplishing.
The industry's ability to underwrite major infrastructure projects, retain more risks domestically, and develop products for emerging risks will be critical to unlocking growth. Omosehin also challenged insurers to embrace technology and innovation as consumers increasingly demand convenience, speed, transparency, personalisation, and simplicity.
Insurers must leverage technology, data analytics, and responsible artificial intelligence to simplify processes, understand customer needs, and develop affordable and accessible products. Omosehin identified trust and claims payment as central to the industry's next phase, saying every settled claim strengthens confidence while delayed claims weaken it.
NAICOM will continue to prioritise consumer protection and initiatives that place policyholders at the centre of insurance operations. Frank Aigbogun, publisher of BusinessDay, said the recapitalisation had created a new set of challenges for insurers, including the need to meet customer expectations while generating adequate returns for shareholders who provided fresh capital.
Aigbogun said insurers also have a role to play in Nigeria's ambition to build a $1 trillion economy through capital deployment, strategic risk management, and support for economic activity. Improving insurance penetration will require the industry to do more to explain the value and terms of its products to potential customers.
Industry stakeholders, including Abimbola Tiamuiyu of the Chartered Insurance Institute of Nigeria (CIIN), Ebelechukwu Nwachukwu of the Nigerian Insurers Association (NIA), and Ekeoma Ezeibe of the Nigerian Council of Registered Insurance Brokers (NCRIB), emphasised the need for the industry to build human capacity, strengthen expertise in emerging risks, and invest in innovation and digital distribution to translate stronger balance sheets into underwriting capacity, innovation, and wider insurance penetration.
Key points
- Insurers must now focus on translating capital into capacity for stronger underwriting, claims payment, innovation, and customer service.
