The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Omosehin, has called on insurance companies to leverage the capital raised through the recently concluded recapitalisation exercise to enhance their underwriting capacity, improve claims settlement, and drive technological innovation. Speaking at the BusinessDay Insurance Conference 2026, Omosehin emphasised that stronger balance sheets should translate into greater capacity to serve policyholders and support economic development. He noted that capital should provide insurers with the financial strength to underwrite risks, pay claims, develop innovative products, and contribute to national economic growth.
Omosehin highlighted that the Nigerian insurance industry has reached a critical stage, with insurance penetration historically remaining below expectations despite operating within one of Africa's largest economies. He attributed the challenge to issues surrounding capacity, confidence, and trust, stressing the need for stronger institutions capable of supporting Nigeria's economic aspirations. The commissioner noted that recent regulatory reforms, particularly those introduced under the Nigerian Insurance Industry Reform Act 2025, aim to strengthen the institutional capacity of insurers rather than merely increasing their capital bases.
The objective of the recapitalisation exercise, according to Omosehin, is to create stronger institutions capable of providing better services to policyholders and contributing more effectively to economic development. He said the industry should now focus on the results being generated from the additional financial strength, rather than the amount of capital raised. Omosehin asked key questions: Has it strengthened underwriting capacity? Has it enhanced claims-paying ability? Has it improved customer satisfaction? Has it increased public confidence? These, he said, are the questions that truly matter.
Omosehin identified significant opportunities for insurers in Nigeria's expanding population, entrepreneurial activity, infrastructure development, digital economy, agricultural transformation, and growing middle class. However, he noted that taking advantage of these opportunities would require institutions with adequate financial and operational capacity to provide appropriate risk protection. Stronger capacity, he said, would enable insurers to underwrite major infrastructure projects, retain more risks within the domestic market, develop products for emerging risks, and extend insurance coverage to underserved communities.
The commissioner stressed that regulation alone cannot deliver sustainable growth, calling for greater commitment from all stakeholders across the insurance ecosystem. He urged insurers to invest in people, boards to invest in governance, management teams to invest in innovation, and the industry to invest in public education. Omosehin also emphasised the importance of innovation and technology in maintaining the relevance of the insurance industry as consumer expectations continue to evolve.
Omosehin highlighted the need for insurers to embrace digital technologies, data analytics, and the responsible use of artificial intelligence to streamline operations, understand customer needs, and develop more relevant products. He said NAICOM would continue to support initiatives promoting digital transformation, InsurTech development, inclusive insurance, product innovation, and operational efficiency. The commissioner also identified public trust as a critical foundation for the growth of the insurance industry, noting that weak confidence could discourage consumers from purchasing policies and constrain the sector's expansion.
Omosehin reaffirmed NAICOM's commitment to policies and initiatives that place policyholders at the centre of insurance operations. He emphasised the importance of human capital development, describing skilled professionals as one of the most important assets required to build a stronger insurance industry. The commissioner called for increased investment in talent development, professional education, ethical leadership, and continuous learning across the sector. He noted that the industry's capacity will ultimately be determined by the quality of its people.
Key points
- NAICOM Commissioner Olusegun Omosehin urges insurance companies to convert recapitalisation gains into stronger underwriting capacity and improved claims settlement.
- The Nigerian insurance industry has reached a critical stage, with insurance penetration historically remaining below expectations despite operating within one of Africa's largest economies.
- Omosehin emphasised the importance of innovation, technology, and human capital development in building a stronger insurance industry.
