Lagos Building Insurance Scheme Will Protect Disaster Victims – NAICOM Boss Omosehin

The National Insurance Commission (NAICOM) has thrown its weight behind the Lagos State Building Insurance Scheme, describing it as a landmark initiative that will strengthen risk management, improve urban resilience and provide financial protection for residents affected by disasters.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, stated this on Friday while delivering the keynote address at the official launch of the Lagos State Building Insurance Scheme in Victoria Island, Lagos.

Omosehin said the initiative, introduced by the Lagos State Government, combines digital innovation, geospatial intelligence and systematic enforcement to ensure buildings across the state are insured against fire, flooding and building collapse.

He congratulated Governor Babajide Sanwo-Olu and other stakeholders for championing the scheme, describing it as a major milestone in the development of Nigeria’s insurance sector.

“I want to congratulate His Excellency, Governor Babajide Sanwo-Olu, the Lagos State Government, and all stakeholders whose vision, commitment, and leadership have culminated in this historic achievement,” he said.

According to him, the launch goes beyond a ceremonial event, stressing that it marks the beginning of a new approach to protecting lives and property in Lagos.

“Today is not a ceremonial occasion. It is a day to launch a scheme that will change the relationship between the people of Lagos and the buildings in which they live, work, trade and worship,” Omosehin stated.

He noted that the scheme comes against the backdrop of recurring incidents of building collapse and fire outbreaks, which have continued to claim lives and destroy livelihoods.

“Behind every collapse and every fire is a household that loses a home, a trader who loses a livelihood, and too often, a life that cannot be recovered. The question that must trouble any responsible government and any serious regulator is simple: when disaster strikes, who bears the loss?” he said.

Omosehin explained that compulsory building insurance should be viewed as a public safety intervention rather than merely a regulatory obligation, noting that insurance enables families, businesses and communities to recover quickly after disasters.

“When a building collapses, insurance helps families recover. When fire destroys commercial premises, insurance enables businesses to restart operations. When floods damage homes and public facilities, insurance provides financial support that reduces suffering and accelerates recovery,” he said.

He added that the Lagos initiative aligns with the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu, which strengthened consumer protection, reinforced compulsory insurance and expanded the powers of NAICOM to enforce compliance.

“What Lagos State has done is to take this national law and give it practical, enforceable life at the level where buildings actually stand. That is precisely the partnership the Act envisaged between the federal regulator and the state governments,” he said.

The NAICOM boss commended Lagos State for deploying technology to address weak compliance and fake insurance certificates.

“What distinguishes the Lagos initiative is that it confronts the enforcement gap directly. By marrying geospatial building intelligence to a digital delivery platform and to systematic enforcement at State scale, Lagos is not merely restating an obligation. It is building machinery to make the obligation real,” he added.

Omosehin also challenged insurance companies to prioritise prompt settlement of genuine claims, warning that public confidence in the industry depends on the claims process.

“A scheme that collects premiums promptly but pays claims slowly will fail and it will deserve to fail,” he said.

“The Commission will hold operators to the standards the law demands: fair terms, honest pricing, and prompt, full settlement of legitimate claims. Public confidence in insurance is not a slogan. It is earned one honoured claim at a time.”

He urged property owners to embrace insurance as an investment in resilience, while calling on developers, brokers, insurers and government agencies to support the successful implementation of the scheme.

Omosehin further pledged NAICOM’s regulatory support for the initiative, promising to ensure that only licensed insurers participate in the scheme, tackle fake insurance certificates and maintain an open, transparent and competitive framework.

“If it succeeds here, and it must, it becomes the template by which other States across the Federation can protect their own citizens. Lagos, as so often, is lighting the path,” he said.