Nigeria's insurance industry has long occupied an uncomfortable position in the national economy, with weak public confidence, low penetration, and concerns over claims settlement. However, under Olusegun Ayo Omosehin's leadership as Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM) since 2024, the sector has seen a renewed sense of purpose. With over three decades of experience in the industry, Omosehin has worked across different segments and occupied senior leadership positions.
Omosehin's extensive experience gives him a practical understanding of the industry's strengths and weaknesses. He has worked at Crusader Insurance, Custodian & Allied, Admiral Insurance, AIICO General Insurance, Mutual Benefits Assurance, and Old Mutual Nigeria Life Assurance. He also served as Chairman of the Nigerian Insurers Association. This experience informs his approach to reforming the industry, which includes strengthening the financial capacity and resilience of operators through the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The recapitalisation exercise, completed under Omosehin's watch, has resulted in stronger capital positions across compliant operators. This has fundamentally changed the conversation around the strength of insurance companies in Nigeria. The process was a difficult regulatory undertaking but necessary for the industry to compete effectively in a modern economy. The reforms aim to ensure that stronger balance sheets translate into better services for policyholders.
NAICOM has emphasized corporate governance, financial soundness, accountability, and better claims settlement. The establishment of the Insurance Policyholders' Protection Fund is significant, as it strengthens the institutional safety net for policyholders and reinforces the principle that the customer must remain at the centre of insurance regulation. This approach prioritizes policyholders' needs and aims to improve public confidence in the industry.
Another important aspect of Omosehin's stewardship is the movement towards risk-based regulation. NAICOM's work on a Risk-Based Capital framework aims to ensure that capital requirements correspond more closely with the risks individual insurance companies undertake. This approach encourages stronger risk management, discourages reckless practices, and creates a regulatory environment in which responsible operators can grow while policyholders' interests remain protected.
The reforms are extending beyond traditional industry boundaries, focusing on innovation, technology, financial inclusion, and expanding insurance penetration. NAICOM's collaboration with the National Space Research and Development Agency on geospatial data and catastrophic risk insurance is an example of how the sector can respond to emerging challenges. This broader outlook is crucial for maximizing the economic value of insurance in Nigeria.
The success of these reforms will be measured by their impact on policyholders, including faster and fairer claims settlement, better products, and improved customer service. The industry must earn public confidence by demonstrating that insurers will honour their promises when policyholders suffer legitimate losses. Ultimately, the story of Omosehin's tenure at NAICOM is worth watching, as he works to confront longstanding structural and confidence challenges in the industry.
Key points
- The reforms prioritize policyholders' needs and aim to improve public confidence in the industry.
- The recapitalisation exercise has resulted in stronger capital positions across compliant operators.
- The industry is moving towards risk-based regulation to encourage stronger risk management and responsible practices.
