By David Akinmola
The Nigerian Insurers Association (NIA) has said the insurance industry will enter a decisive phase in 2026, as operators move to enforce recent reforms and convert policy gains into stronger governance, improved public trust, and expanded market penetration.
The association, which reviewed developments in the sector during 2025, said the outgoing year laid the institutional and regulatory groundwork required for the effective implementation of the Nigeria Insurance Industry Reform Act (NIIRA) and the anticipated recapitalization exercise.
According to the NIA, sustained engagement with regulators, renewed advocacy on compulsory insurance enforcement, and the launch of the NIA Innovation Lab were among the initiatives deployed to strengthen industry capacity and responsiveness.
The association also expanded collaboration with public institutions, including the National Assembly and the Economic and Financial Crimes Commission (EFCC), to address compliance gaps and promote a more disciplined insurance market.
Speaking in a New Year message to Chief Executives of insurance companies, NIA Chairman, Kunle Ahmed, said the industry’s resilience in 2025 had created a platform for deeper reforms. He noted that the association intensified its media engagement to improve public understanding of insurance, while scaling up capacity-building programmes to equip professionals for emerging risks and heightened regulatory expectations.
Ahmed also highlighted the commencement of work on a Nigerian Mortality Rate Table, supported by the Africa Re Foundation, describing it as a critical tool that would enhance actuarial accuracy and long-term sustainability in the life insurance segment.
A major milestone for the sector in 2025 was the signing into law of the Nigeria Insurance Industry Reform Act. Ahmed said the legislation strengthens governance structures, supports market development, and provides a clearer pathway for increasing insurance penetration in Africa’s largest economy.
Looking ahead to 2026, he said the association would focus on supporting the implementation of the new law through advocacy, technical guidance, and capacity-building, while also setting up a recapitalization help desk to assist member companies during the transition.
Reacting to the reform drive, the National Insurance Commission(NAICOM) said it expects operators to demonstrate stronger compliance and financial resilience under the new legal framework.
According to the commission, the reforms were designed to “Restore confidence, policyholders, and ensure that only well-capitalized and well-governed insurers operate in the market.”
Industry operators also welcomed the signal from the NIA. A managing director of a leading composite insurance firm said the recapitalization support framework would help smaller and mid-sized firms navigate regulatory changes without disrupting service delivery.
“The emphasis should now be on execution. Capital alone is not enough; governance, technology, and claims efficiency must improve if the industry is to earn public trust,” the executive said.
From the intermediaries’ perspective, insurance brokers urged closer collaboration between insurers and regulators to ensure that reforms translate into tangible benefits for policyholders.
Also commented on the development at the weekend, the President, Nigerian Council of Registered Insurance Brokers (NCRIB) said enforcement of compulsory insurance and clearer market rules would “create a level playing field and expand opportunities across the value chain.”
“The success of NIIRA will ultimately be measured by how accessible insurance becomes to ordinary Nigerians,” he added.
