NAICOM renews push to expand insurance through Takaful

The National Insurance Commission has reiterated its commitment to harnessing the potential of Takaful insurance to deepen insurance penetration and promote financial inclusion in Nigeria.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, disclosed this in a statement issued on Saturday in Abuja.

Omosehin made the commitment following the conclusion of a high-level Diagnostic Assessment Mission on Nigeria’s Takaful sector by a delegation from the Islamic Financial Services Board.

He said the commission was determined to use the development of Takaful to advance financial inclusion while supporting sustainable economic growth across the country.

The NAICOM chief urged the IFSB delegation to submit practical, data-driven recommendations that could strengthen ongoing regulatory reforms and support the development of the Takaful market.

According to him, Takaful should be viewed as an alternative insurance model rather than simply a segment of conventional insurance, noting that it could cater to a wide range of consumers while adhering to established Shariah governance principles.

He stressed the need to strengthen risk-based capital requirements and supervisory frameworks, improve data transparency and promote prudent surplus management.

Omosehin said these measures were necessary to safeguard participants’ interests while creating the conditions for sustainable expansion of the Takaful industry.

He said the preliminary findings from the assessment had identified measures to improve Nigeria’s legal, regulatory and supervisory framework for Takaful.

“The preliminary findings of the mission identified several measures aimed at strengthening the legal, regulatory, and supervisory framework for Takaful in Nigeria.

“NAICOM views its collaboration with the IFSB as a significant milestone in the development of a robust and resilient Takaful ecosystem.

“The partnership is expected to contribute to greater financial stability, increased consumer confidence, stronger policyholder protection, and responsible innovation within the insurance industry,” he said.

Omosehin added that the full report of the Diagnostic Assessment Mission would be released after the review process is completed and feedback from relevant stakeholders incorporated.