NAICOM Tasks Insurers on Trust, Innovation Ahead of Recapitalisation Deadline

The National Insurance Commission (NAICOM) has called on operators in the insurance industry to prioritise trust, strengthen enforcement of compulsory insurance and accelerate innovation as the July 31 recapitalisation deadline approaches.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, made the call on Friday at the investiture of Mrs Ebelechukwu Nwachukwu as the 27th Chairman and first female chairman of the Nigerian Insurers Association (NIA).

Speaking at the ceremony, Omosehin described Nwachukwu’s emergence as both historic and timely, saying her appointment comes at a critical stage in the ongoing transformation of Nigeria’s insurance industry.

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“It is my honour to address you today at the investiture of Mrs. Ebelechukwu Nwachukwu as the 27th and the first female Chairman of the Nigerian Insurers Association,” he said.

“Your emergence is both historic and timely. Historic, because you bring to this office decades of proven leadership, technical depth, and a reputation for excellence. Timely, because you assume office at a defining phase in the transformation journey of our industry.”

The NAICOM boss also paid tribute to the immediate past NIA Chairman, Kunle Ahmed, commending his leadership and support during the passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

According to him, Ahmed’s contributions to the reform process have laid a solid foundation for the industry’s future.

Omosehin said the insurance sector has entered a new era following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 by President Bola Tinubu a year ago.

He noted that the legislation introduced major reforms, including the Policyholders Protection Fund and risk-based supervision, while providing the legal framework needed to strengthen public confidence in the industry.

The commissioner said attention is now focused on the July 31, 2026 deadline for recapitalisation, expressing satisfaction with the progress made by insurance firms in meeting the new minimum capital requirements.

“Twenty-eight days from today, on 31st July 2026, the recapitalisation deadline will close. Our industry will emerge with stronger, better-capitalised companies. This is not recapitalisation for its own sake. It is recapitalisation for capacity, for retention, and for credibility,” he said.

He added that many institutions had already met or exceeded the minimum capital requirement, describing the development as evidence that the industry possesses the financial strength needed to support the Federal Government’s ambition of building a $1 trillion economy by 2030.

Omosehin, however, stressed that legislation and recapitalisation alone would not transform the industry without strong leadership from operators.

He charged the Nigerian Insurers Association to focus on rebuilding public trust through prompt claims settlement and improved customer service.

“Our biggest deficit is not capital. It is trust,” he said.

“Every claim paid promptly, every policy explained clearly, every customer treated fairly, adds a block to the trust we must rebuild.”

He urged the association to make claims excellence an industry-wide culture by publishing claims ratios and encouraging competition based on service delivery.

The NAICOM chief also called for stronger collaboration between insurers, state governments and law enforcement agencies to improve compliance with compulsory insurance laws.

He noted that despite six classes of compulsory insurance being backed by law, compliance remains below 30 per cent.

“The Commission cannot enforce alone. We need the market to insist on compliance as a condition for doing business,” he said.

Omosehin further challenged operators to embrace innovation by expanding digital insurance services and developing products tailored to the needs of ordinary Nigerians.

He identified embedded insurance, microinsurance, Takaful and parametric insurance for agriculture and climate risks as key growth areas capable of increasing insurance penetration, which currently remains below one per cent.

Addressing the new NIA chairman, Omosehin urged Nwachukwu to unite the industry, raise professional standards and expand insurance coverage across the country.

He said: “Unite the market. Competition must not become fragmentation. Our transformation needs one voice, one standard, one purpose.”

He also encouraged her to improve professionalism and claims settlement while working to extend insurance services to millions of Nigerians who remain uninsured.

The commissioner assured Nwachukwu of NAICOM’s support, saying the commission would continue to promote risk-based supervision, consumer protection and sound corporate governance while maintaining strict oversight of market conduct and solvency.

He expressed optimism that the ongoing reforms would strengthen the insurance industry and position it as a key driver of Nigeria’s economic growth.

“The Nigerian insurance industry stands at a defining inflection point. The laws have changed. The capital base is changing. Now, industry leadership must embrace its historic responsibility to transform how we serve the Nigerian people,” Omosehin said.