Insurance Industry Needs Stronger Capital, Innovation To Survive Emerging Risks — NAICOM

The National Insurance Commission (NAICOM) has called for stronger capitalisation, improved technology, sound governance and greater insurance inclusion to build a more resilient insurance industry in Nigeria.

Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, made the call while delivering the keynote address at the 2026 Insurance Professionals’ Forum in Abeokuta, Ogun State.

The forum, organised under the theme, “The Economics of Risk: Sustaining a Resilient Insurance Industry,” focused on the changing nature of risks facing the insurance sector and the need for the industry to adapt.

Omosehin said economic volatility, climate-related disasters, technological disruption, cyber threats, demographic changes and geopolitical uncertainties were reshaping traditional insurance models.

He said Nigeria’s insurance industry was also at a “historic inflection point” following recent regulatory reforms, particularly the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025.

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According to him, insurance plays a critical role in economic development by protecting households and businesses, mobilising long-term savings, supporting investment and enabling economic activities to continue despite uncertainty.

“Insurance is far more than financial service. It is a strategic instrument for economic stability. It is the institutional mechanism through which societies transform uncertainty into confidence and convert vulnerability into resilience,” Omosehin said.

The NAICOM chief said the changing risk environment required insurers to move beyond reliance on historical data and adopt modern tools such as predictive analytics, scenario modelling, climate intelligence and enterprise risk management.

He noted that climate change had altered catastrophe patterns, while cyber threats had become strategic risks capable of disrupting businesses and critical infrastructure.

Omosehin said the COVID-19 pandemic had also demonstrated that modern risks could transcend sectors and national borders, making institutional agility, sound governance and operational preparedness essential to building resilience.

On regulation, the commissioner said the implementation of NIIRA 2025 marked the beginning of a new phase for the Nigerian insurance industry rather than the end of ongoing reforms.

“Our vision is clear: to build a financially sound, professionally driven, technologically enabled, well-governed, and consumer-focused insurance market capable of supporting Nigeria’s economic aspirations,” he said.

He identified policyholder protection, financial soundness, corporate governance, market conduct, innovation, insurance inclusion and market stability as key pillars of the commission’s regulatory approach.

Omosehin also highlighted the ongoing recapitalisation of the industry, saying the exercise was designed to strengthen insurers’ capacity to retain larger risks, improve claims settlement, invest in technology and compete effectively.

He said the success of recapitalisation should not be measured only by the size of insurers’ balance sheets.

“The true measure of recapitalization therefore lies not in balance sheet expansion alone, but in the creation of stronger, more resilient institutions capable of delivering sustainable value to policyholders and the broader economy,” he said.

The NAICOM boss said public confidence remained critical to the survival of the insurance industry, stressing that insurers must prioritise ethical leadership, transparency, accountability and prompt settlement of genuine claims.

“At the heart of insurance lies a simple but profound reality: insurance is a promise,” Omosehin said.

“Trust therefore constitutes the industry’s most valuable asset. No amount of capital, technology, or regulation can compensate for a deficit of trust.”

He said the Insurance Policyholders’ Protection Fund established under NIIRA 2025 would provide an additional safety net in cases involving insurer distress.

Omosehin further urged insurance companies to embrace artificial intelligence, machine learning, predictive analytics, blockchain, geospatial intelligence and digital platforms to improve underwriting, claims processing, fraud management and customer engagement.

“The future will not necessarily belong to the largest insurers, but increasingly to the most adaptive insurers,” he said.

He also called for greater investment in professional development, saying the increasing complexity of risks required insurance practitioners with skills in areas including data analytics, cybersecurity, climate risk assessment, governance and enterprise risk management.

On insurance penetration, Omosehin said millions of Nigerians remained uninsured or underinsured, describing the protection gap as both a developmental challenge and an opportunity for the industry.

He urged insurers to expand microinsurance, agricultural insurance, inclusive health protection and technology-enabled distribution systems to underserved Nigerians.

“Insurance products must become more affordable, more accessible, more understandable, and more responsive to the realities of Nigerian consumers,” he said.

Omosehin said building a resilient insurance industry required collaboration among insurers, reinsurers, brokers, regulators, technology providers, policymakers, professional bodies, development partners and consumers.

He urged stakeholders to position insurance as a strategic driver of Nigeria’s economic transformation rather than merely a mechanism for compensating losses.

“Let us position insurance, not merely as a mechanism for indemnification, but as a strategic catalyst for Nigeria’s economic transformation and sustainable development,” he said.