By David Akinmola
The National Insurance Commission (NAICOM) has launched the Insurance Sector Strengthening Programme (ISSP), a strategic initiative aimed at deepening insurance penetration, rebuilding public trust and positioning the industry as a stronger contributor to Nigeria’s economic development.
Commissioner for Insurance, Olusegun Ayo Omosehin, who spoke at the official launch of the programme in Abuja yesterday, said the initiative is designed to accelerate the transformation of the insurance sector into a more inclusive, innovative, resilient and trusted industry.
According to him, the programme comes at a time when insurance penetration in Nigeria remains significantly below its potential despite the size and growth of the nation’s economy.
Omosehin identified limited public understanding of insurance, inadequate coverage, trust deficit, capacity gaps and fragmented distribution channels as some of the factors constraining the industry’s growth.
He, however, said the challenges presented opportunities for the industry to develop innovative solutions, strengthen coordination among stakeholders and deepen engagement with consumers.
The ISSP, he explained, is built around six critical pillars: advocacy and policy; awareness and education; capacity building; gender inclusion; youth engagement; and Micro, Small and Medium Enterprises (MSMEs) and value chain development.
Omosehin said the awareness and education component would be critical to improving insurance uptake, stressing that no insurance market could thrive where consumers lacked adequate understanding of insurance products and their benefits.
He said the programme would deploy targeted campaigns, stakeholder education and innovative communication approaches to strengthen insurance culture and financial literacy among Nigerians.
The commissioner also stressed the importance of human capital development, saying the competitiveness of the Nigerian insurance industry would increasingly depend on the quality and competence of its professionals.
He said the ISSP would support training and professional development initiatives designed to strengthen technical expertise, professionalism and service delivery across the insurance value chain.
On inclusion, the commissioner said women, youths and MSMEs represented significant opportunities for expanding the insurance market, noting that large segments of these groups remained underserved.
He said greater participation of women and young people in the insurance ecosystem, supported by tailored products, innovative engagement and career development opportunities, and would enhance the sector’s relevance and market reach.
According to him, the programme also recognises the importance of MSMEs to employment generation, innovation and productivity, noting that many small businesses continue to operate without adequate risk protection.
“Expanding insurance access for this segment will promote business resilience, economic stability and long-term enterprise growth,” he said.
The NAICOM boss said the ISSP aligns with the objectives of the Nigeria Insurance Industry Reform Agenda (NIIRA 2025), particularly in the areas of insurance penetration, professionalism, innovation, consumer protection and increased contribution of the sector to economic growth.
He assured stakeholders that the commission would continue to create an enabling environment for innovation, but warned that such innovation must not undermine prudential standards and consumer protection.
“Market expansion will be supported, but not at the expense of solvency, transparency or public trust,” he said.
Omosehin said the next phase of insurance growth must be anchored on responsible underwriting, adequate capitalisation, robust corporate governance, transparent operations and prompt settlement of genuine claims.
He added that operators would have to earn public confidence through compliance, professionalism and service excellence.
With digital transformation rapidly changing the way financial services are designed, distributed and consumed, the commissioner said the insurance industry could no longer afford to operate outside the digital ecosystem.
He said customers increasingly expect convenience, transparency and personalised solutions, adding that the integration of digital platforms, insurtech solutions and data-driven approaches under the ISSP would help make the Nigerian insurance market more competitive.
Omosehin, however, identified trust as the ultimate foundation for sustainable growth in the sector.
He said: “Trust is the foundation of every successful insurance market. It is earned through transparency, timely claims settlement, ethical conduct, strong regulation and consistent delivery of value.”
He stressed that regulation must serve both as a shield for policyholders and a compass for responsible market development, urging stakeholders to use the ISSP to strengthen the relationship between the industry and the public.
The commissioner said the success of the initiative would require collaboration among the regulator, insurance companies, intermediaries, technology providers, development partners, professional bodies, educational institutions, consumers and the media.
According to him, while NAICOM would provide policy direction and oversight, operators must develop innovative products and expand distribution channels, professional bodies must strengthen standards and capacity, and development partners must provide technical support.
He also charged the media with the responsibility of amplifying public awareness and improving Nigerians’ understanding of insurance.
Omosehin expressed optimism that sustained commitment, strategic partnerships and collective action could transform insurance from an underutilised financial service into a major instrument for economic resilience, social protection, wealth creation and national development.
He commended the promoters and partners of the ISSP for their commitment to strengthening the industry, assuring stakeholders of NAICOM’s continued support for initiatives consistent with its mandate of protecting policyholders, maintaining market stability and promoting healthy industry growth.
He said the launch should mark the beginning of a new chapter for the Nigerian insurance industry, defined by innovation, inclusion, collaboration, professionalism, trust and regulatory discipline.
Speaking on the new development, the Chairman of the Nigerian Insurers Association (NIA),Mrs. Ebelechukwu Nwachukwu, said the association welcomed the ISSP, describing it as a timely framework for addressing the structural challenges limiting the growth of insurance in Nigeria.
She said insurers were ready to work with NAICOM and other stakeholders to improve public confidence, expand distribution, strengthen claims settlement and develop products that respond to the needs of individuals, families and businesses.
Nwachukwu, said the success of the programme would depend on sustained implementation, effective coordination and measurable outcomes.
She urged operators to embrace professionalism, transparency and innovation, adding that the industry must demonstrate its value by providing accessible and reliable protection to policyholders.
