The National Insurance Commission (NAICOM) has called on insurance companies in Nigeria to convert the capital raised during the sector's recapitalisation exercise into stronger underwriting capacity, faster claims settlement, and improved customer service. This challenge was issued by Commissioner for Insurance, Olusegun Omosehin, who was represented by Julius Odidi, Head of NAICOM's Lagos Control Office. The call was made at a conference themed "From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria's Insurance Sector."
According to Omosehin, the success of the recapitalisation exercise should not be measured solely by the amount of capital injected into insurance companies, but by the additional capacity created by the funds. He stated that stronger balance sheets should enable insurers to take on larger risks, meet claims obligations, invest in technology, and improve confidence in the industry. This, he believes, will ultimately support economic growth.
Omosehin emphasized that financial strength is not an end in itself, but rather a means to create capacity. This capacity includes underwriting risks, paying claims, innovating, inspiring confidence, and supporting economic growth. He urged insurers to assess the impact of recapitalisation by measuring improvements in underwriting capacity, claims-paying ability, customer satisfaction, and public confidence.
The commissioner identified several areas that could create new opportunities for insurers, including population growth, infrastructure development, the expansion of the digital economy, agricultural transformation, and the growing middle class. He noted that insurers would need to use technology, data analytics, and artificial intelligence to develop products that are more affordable, accessible, and responsive to changing consumer needs.
Omosehin stressed the importance of innovation in the insurance industry, stating that it is no longer optional but a necessity for relevance. He also linked insurance penetration to the industry's ability to build public trust, which can be demonstrated by meeting obligations to policyholders. Claims payment was highlighted as one of the clearest measures of an insurer's commitment to customers.
The commissioner emphasized the need for insurers to strengthen their human capital as the industry faces emerging risks such as cyber threats, climate change, and geopolitical developments. He stated that the industry's capacity will ultimately be determined by the quality of its people. Omosehin called for closer cooperation among NAICOM, insurers, brokers, policymakers, the media, and policyholders to strengthen the industry.
Omosehin concluded that the next phase of reform should focus on converting additional capital into operational capability, innovation, and greater public confidence. He emphasized that this journey requires collaboration, partnership, and leadership from every stakeholder. The goal is to ensure that the insurance sector contributes effectively to Nigeria's economic growth and development.
Key points
- NAICOM urges insurers to convert capital into capacity for stronger underwriting and improved customer service.
- Insurers must use technology and data analytics to develop affordable and accessible products.
- Building public trust through claims payment and customer service is crucial for insurance penetration.
