The National Insurance Commission (NAICOM) has disclosed that insurance is far more than financial service “It is a strategic instrument for economic stability”.
Speaking at the 2026 Insurance Professionals Forum in Abeokuta, Ogun State, the Commissioner for Insurance, Mr Olusegun Omosehin said insurance is the institutional mechanism through which societies transform uncertainty into confidence and convert vulnerability into resilience.
“Nigeria’s insurance industry stands at a historic inflection point. Through recent regulatory reforms, particularly the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025, the sector has entered a new phase of development marked by higher expectations, stronger institutions, enhanced regulatory oversight, and a renewed commitment to policyholder protection.
“At its essence, risk represents uncertainty regarding future outcomes. Economics teaches us that uncertainty influences virtually every aspect of human behaviour, from investment decisions and consumption patterns to entrepreneurship and long-term planning.
“Without effective risk management, economic actors become cautious. Investments decline. Innovation slows. Growth becomes constrained”
He stated that through pooling, diversification, and risk transfer, insurance enables individuals, businesses, and governments to undertake productive activities without bearing the full burden of uncertainty.
“Consequently, the insurance industry occupies a uniquely strategic position within every economy. It mobilizes long-term savings, facilitates investment, supports financial stability, protects households, promotes entrepreneurship, encourages capital formation, and underwrites economic growth.
“Agriculture cannot flourish without crop insurance. Infrastructure development cannot proceed sustainably without construction and engineering covers. Trade cannot expand without marine insurance. Credit markets cannot deepen without adequate protection mechanisms. Energy projects cannot attract investment without robust risk transfer structures.
“Indeed, insurance is often described as the invisible infrastructure of economic development because its contribution, though frequently unnoticed, is indispensable”.
Omosehin noted that “perhaps the greatest economic opportunity before our industry lies in expanding insurance penetration across Nigeria. Millions of Nigerians remain uninsured or underinsured.
“This protection gap represents a developmental challenge, but also an extraordinary opportunity. A truly inclusive insurance sector strengthens economic resilience at every level of society. It protects households from financial shocks. It enables small businesses to recover from losses. It supports agricultural productivity. It promotes financial inclusion. It contributes to poverty reduction and social stability.
“The future therefore requires innovative solutions including microinsurance, agricultural insurance, inclusive health protection mechanisms, and technology-enabled distribution platforms designed to reach underserved populations.
“Insurance products must become more affordable, more accessible, more understandable, and more responsive to the realities of Nigerian consumers”.
He reaffirmed that “building a resilient insurance industry is our collective responsibility. Insurers, reinsurers, brokers, loss adjusters, technology providers, policymakers, professional bodies, educational institutions, development partners, and consumers all have vital roles to play.
“The challenges we face are too complex for isolated solutions. Whether addressing climate risks, cyber threats, catastrophe financing, infrastructure protection, financial inclusion, or operational resilience, collaboration will remain indispensable” the Commissioner stated.