By Favour Pius
National Insurance Commission (NAICOM) has rolled out a comprehensive reform agenda aimed at restoring public confidences, strengthen market discipline and positioning Nigeria’s insurance industry for sustained growth, as regulators and operators intensify efforts to deepen penetration and expand the sector’s contribution to the economy.
Speaking at a high-level forum of leaders from banking, insurance, capital markets, pension, fintech, and professional services in Lagos, the Commissioner for Insurance, Olusegun Omosehin said the commission’s regulatory philosophy is anchored on “regulation with purpose”, a framework designed to protect policyholders while enabling innovation and long-term market expansion.
Omosehin noted that the industry must convert long-standing challenges of low penetration and weak public confidence into opportunities for inclusive growth and economic resilience.
He said that regulation must also strengthen market discipline so that insurers compete based on solvency, governance quality, pricing integrity, and service performance rather than regulatory arbitrage.
Omosehin noted that the regulatory transformation gained stronger momentum following the enactment of the Nigeria Insurance Reform Act 2025, which he described as a once-in-a-generation opportunity to modernize the industry’s rulebook.
According to him, the reform law provides the foundation for higher governance and prudential standards, accelerated digitization, and wider insurance access for households and small businesses.
Under the new regulatory agenda, NAICOM will prioritise financial soundness, governance and compliance, consumer fairness, market conduct, as well as innovation and digitization.
Omosehin explained that the commission plans to strengthen risk-based capital supervision and enhance oversight of insurers through tools such as Own Risk and Solvency Assessment (ORSA), while ensuring stronger board accountability and
Governance standards across insurance firms.
He said the commission would also enforce clearer product disclosures, disciplined pricing structures, and faster claims settlement processes, while introducing transparent complaint resolution mechanisms to enhance consumer protection.
To strengthen accountability and improve public confidence, the commission also plans to publish comparable market conduct indicators such as claims settlement timelines, complaint resolution performance and service delivery metrics for insurers operating in the country.
Industry operators, however, stressed that while regulation is critical, sustainable growth would require stronger collaboration between regulators and market players.
Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, said the industry welcomed regulatory reforms aimed at improving governance and market credibility, noting that restoring trust remains central to deepening insurance penetration.
According to him, stronger regulatory clarity and faster approval processes would enable insurers to design products that better meet the needs of individuals and small businesses.
“The industry supports reforms that improve transparency, governance, and consumer protection. Trust is the foundation of insurance, and once policyholders are confident that claims will be honoured, penetration will naturally improve,” he said.
Almed also stressed the importance of technological innovation and partnerships across the financial ecosystem in expanding access to insurance products.
Similarly, Director-General of the Nigerian Insurers Association (NIA), Bola Odukale, said the industry is already investing in digital transformation, data analytics, and micro-insurance models to reach underserved segments of the population.
She noted that regulatory initiatives such as innovation sandboxes and faster product approvals would support the development of inclusive insurance products target s small businesses, farmers, and low-income households.
Stakeholders in the broader financial ecosystem also highlighted the need for deeper integration between insurance and other financial services to drive growth.
According to industry analysts, partnerships with banks, pension fund administrators, fintech companies, and telecommunications operators could significantly expand distribution channels through embedded and bundled insurance products.
