By David Akinmola
The nation’s Insurance Industry Reform Azct (NIIRA) could unlock fresh opportunities for growth trust and financial inclusion in the nation’s risk-managent market, industry leaders have said, urging operators to seize its potential beyond compliance with capital rules.
Speaking at the industry leaders engagement at the weekend in Lagos that involved regulators and market executives described the landmark law signed by President Bola Tinubu in July as more than a regulatory overhaul. They said its provisions for higher capital, risk-based supervision, clearer contracts and simplified products could make insurance a visible contributor to Nigeria’s $ 1 trillion economy targe if properly implemented.
The Director of Legal, Enforcement and Market Development, National Insurance Commission, (NAICOM), said the reforms were designed to give operators stronger balance sheets while making the market easier to access for households and small businesses.
He noted that the new capital tiers N10 billion for Life, N15 billion for non-life and 35 billion for reinsurance would allow firms to absorb larger risks and retain more premium income locally.
“The second layer, which is risk-based capital, ensures that an underwriter’s capital aligns with its exposure,” Usman said. “This builds confidence that whoever is underwriting a class of business has financial strength to pay claims.”
He added that NIIRA’s new rules on policy documents and simplified proposal forms would make insurance contracts more transparent and help rebuild public trust.
Director-General, Nigerian Insurers Association (NIA) Bola Odukale, said the next challenge was turning the law into action. She stressed that self-regulation and market-driven awreness were essential to ensure that compulsory insurances such as cover for tankers, petrol stations, construction sites and public liability translate into real protection for businesses and citizens.
“One thing is to have a law, another is to make it work,” she said, “we must educate operators and the public about the opportunities within NIIRA, from product development to timely claims settlement, so confidence is not eroded.”
Odukale disclosed that the association would intensify outreach to members, including webinars on underwriting liability and emerging compulsory classes, while encouraging insurers to meet obligations promply.
Also speaking the Executive Director of Business Operations at emPLE Assurance, Makanjuola Tobi, said the sector’s growth prospects depended on tapping Nigeria’s largely uninsured informal economy,which accounts for around 60 per cent of GDP. “We must quickly latch on to the untapped market,” he said, “If informal workers remain outside the net, the industry’s contribution to GDP will stay low.”
Panalists agreed that NIIRA’s success will hinge on steady enforcement, product innovation and strategic partnerships with other sectors such as pensions, microfinance and technology. They called on insurers to move beyond a compliance minded, focusing instead on customer centric offerings and robust claims practices that could position insurance as a pillar of social and economic resilience.
With implementation guideline expected from NAICOM in the coming months, stakeholders said the reform presents a rare chance to deepen penetration, expand employment and embed risk protection in Nigeria’s growth story.
