By Onu Okorie
The Commissioners for Insurance/CEO National Insurance Commission NAICOM Mr Olusegun Ayo Omosehin has tasted the Directors in the insurance industry that Insurance is expected to play a pivotal role in the journey to achieving President Bola Ahmed Tinubu’s planned $1 trillion economy by 2030 serving as both a shock absorber and a growth catalyst.
He stated this yesterday as part of opening address during the 2025 Insurance Directors Conference going on in Lagos.The annual forum brings together the stewards of corporate governance and strategic direction in the sector. This year’s theme, Navigating the New Insurance Landscape, reflects the collective responsibility not just to comply with regulation, but to lead change – to turn compliance into competitiveness and regulation into opportunity for innovation.
According to the NAICOM boss “under the leadership of President Bola Ahmed Tinubu Nigeria is undergoing a bold economic transformation aimed at achieving a $1 trillion economy by 2030.
“Insurance must move from the margins to the mainstream of economic planning. By unlocking its potential, we can provide long-term capital, mitigate risk, and offer financial security to individuals and enterprises — thereby contributing significantly to the nation’s GDP.”
Omosehin explained that the Commission is implementing strategic initiatives to realize the vision, including: digital transformation. “We are building a centralised Insurance Industry database to enhance transparency, ease of supervision, and real-time policy verification, particularly in compulsory classes. Improved Market Conduct and Consumer Protection practices: The Commission is strengthening complaint-resolution mechanisms, ensuring prompt claims settlement, and imposing stricter sanctions for infractions.”
“Capitalisation and Solvency: As provided under NIIRA 2025 and extant Guidelines, there is an ongoing review of entities MCRs to enhance their financial resilience and ability to absorb systemic shocks. Data Protection and Cybersecurity: following the MoU with the Nigerian Data Protection Commission (NDPC), there is an ongoing discussion on Data Protection specific to insurance operators.”
He added that prioritizing enforcement of Compulsory Insurances the collaborations with the Federal Road Safety Corps (FRSC), the Nigeria Police Force (NPF), and various State Governments and Agencies are driving nationwide compliance, especially for third-party motor insurance, building insurance and other classes of compulsory insurances. Innovation and Inclusion: The Commission is keenly working through partnerships to spur innovations and promote Insurtech solutions that make insurance more accessible, affordable, and inclusive.
“These reforms reflect NAICOM’s determination to ensure that regulatory policy becomes a tool for growth, not a bottleneck and that operators have the clarity and confidence to invest in innovation.” He stated.
He also urged the Directors to key into the implementation of the NIIRA 2025. According to him, “as Directors, your leadership is central to the successful implementation of these reforms and indeed of NIIRA 2025. You are the custodians of governance, ethics, and strategic foresight. Your role is not only to oversee financial performance but also to champion innovation, compliance, and resilience. It’s also imperative to highlight that Boards must be proactive, inquisitive, and courageous. Boards must recognise that good governance is not just a regulatory expectation, it is also a moral duty. As leaders, you must hold yourselves to the highest standards of integrity and accountability.”
“Today we stand at the dawn of a new era in the insurance industry. The enactment of NIIRA 2025 marks a pivotal moment, a comprehensive blueprint to reposition the insurance sector as a key driver of economic growth and social protection.
He said that the strategic focus under NIIRA is anchored on three pillars: Reform: Modernizing regulation and aligning with global standards. Strengthening governance, solvency, and public trust
He said that the Commission has embarked on a recapitalization exercise for all insurance and Reinsurance companies, as mandated by NIIRA 2025. This exercise is aimed at strengthening the financial soundness, stability, and competitiveness of the insurance sector in Nigeria. The exercise commenced with the assent of Mr. President July 31, 2025, with a 12-month deadline ending July 31, 2026.
And a dedicated committee is overseeing this process, with responsibilities including: Developing a comprehensive roadmap, issuing guidelines and circulars, also recommending MCR composition, identifying regulatory incentives.
Companies were expected to submit recapitalization plans detailing strategies (e.g., mergers, acquisitions, capital injections), timelines, board approvals, and financial projections. Submission Status: Institutions have submitted Recapitalization plan as at the September 30th deadline for submission. Reviews of the plans have been completed, and the Commission will commence official communication to each company indicating the outcome of the review of Progress Report and also provide guidance and maintain open communication with operators to ensure smooth implementation of the recapitalization exercise.
“Inter-Agency Collaboration to meet deadline NAICOM will maintain open communication and provide guidance throughout this process and have secured the cooperation and support of other regulatory agencies in ensuring a seamless exercise.Rebuilding Trust and Confidence under NIIRA 2025. We must remember that Trust is the bedrock of the industry, and without it, sustainable growth and success are unattainable.”
“As leaders, we must prioritize trust-building and maintenance, fostering a culture of transparency, integrity, and accountability that inspires confidence in our customers, partners, and stakeholders. We must therefore make a collective commitment to deliver on the promises, to pay legitimate claims promptly, to communicate clearly with policyholders, and to uphold fairness in every transaction.”
Speaking on the role of Insurance to the economy, Omosehin said, “our ambition goes beyond regulation. We envision an insurance sector that contributes meaningfully to national development, from infrastructure financing to climate resilience. Through responsible investment and targeted products, insurers can help manage fiscal exposure, stabilize communities, and attract long-term capital. Insurance is not a peripheral service; it is a strategic pillar of national progress.”
“Let me reiterate that NIIRA 2025 is not merely a policy, it is a transformative journey. It demands discipline, innovation, and unity of purpose. I believe that together, we can build a resilient, inclusive, and globally competitive insurance industry that secures Nigeria’s financial future.
“Let us move forward with resolve, guided by a shared vision to reform, rebuild, and recapitalize and in doing so, create a sector that reflects the strength and promise of the nation.”
