The National Insurance Commission (NAICOM) has charged the new chairman of the Nigerian Insurers Association (NIA), Ebelechukwu Nwachukwu, to unite the insurance market, restore public confidence in insurance and drive deeper penetration as the industry enters a defining phase of transformation.
Olusegun Omosehin, commissioner for Insurance/CEO NAICOM speaking at the investiture of Nwachukwu as the 27th chairman and the first female to occupy that position at NIA held in Lagos said the insurance industry now has the legal and regulatory framework needed for sustainable growth and requires strong industry leadership to translate reforms into tangible benefits for Nigerians.
Describing Nwachukwu’s emergence as both “historic and timely,” the commissioner said her decades of leadership experience and technical expertise would be critical as the industry implements the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and concludes its ongoing recapitalisation exercise.
“Today the insurance industry is no longer an industry seeking relevance. We are an industry executing relevance. And your investiture today signals the resolve of operators to lead that execution,” Omosehin said.
He noted that the NIIRA 2025, signed into law a year ago, has provided the industry with a modern legal framework through the establishment of the Policyholders Protection Fund, statutory risk-based supervision and stronger consumer protection measures designed to rebuild confidence in insurance.
Omosehin also highlighted the significance of the industry’s recapitalisation programme, with the July 31 deadline approaching, saying the exercise is aimed at creating stronger and better-capitalised insurers capable of supporting Nigeria’s ambition of building a $1 trillion economy by 2030.
“This is not recapitalisation for its own sake. It is recapitalisation for capacity, for retention and for credibility,” he said, adding that many insurance companies have already met or exceeded the new minimum capital requirements, demonstrating the sector’s growing resilience.
However, he stressed that stronger balance sheets alone would not transform the industry without effective leadership from market operators.
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“The foundations have been laid. But foundations do not build houses. People do. Institutions do. Leadership does. That is why today matters,” he said.
Setting out his expectations for the new NIA leadership, Omosehin identified three critical areas requiring immediate attention, trust, enforcement of compulsory insurance, and innovation.
According to him, rebuilding public confidence remains the industry’s biggest challenge.
“Our biggest deficit is not capital. It is trust,” he said, urging the association to make prompt claims settlement a defining culture across the market.
He called on insurers to publish their claims ratios, compete on customer service and ensure every policyholder is treated fairly, noting that timely settlement of claims remains the most effective way to rebuild confidence in insurance.
On enforcement, Omosehin lamented that compliance with Nigeria’s six compulsory insurance policies remains below 30 percent despite existing legal provisions.
He urged the NIA to work closely with NAICOM, state governments, the Federal Road Safety Corps, the Nigeria Police Force and other enforcement agencies to improve compliance.
“When we enforce, we protect lives, we protect public funds and we grow the market,” he said.
The commissioner also challenged the association to lead innovation by promoting digital insurance channels, embedded insurance, microinsurance, Takaful and parametric products targeted at agriculture and climate risks.
He said insurance penetration remains below one percent because products have not sufficiently addressed the realities of millions of Nigerians.
“Our Regulatory Sandbox is open. Digital channels are waiting. Embedded insurance, microinsurance, Takaful, and parametric covers for agriculture and climate are the future,” he stated.
Addressing Nwachukwu directly, Omosehin described her as a leader known for execution and institution building, expressing confidence that the association had made the right choice.
He challenged her administration to unite operators, raise industry standards and expand insurance coverage across the country.
“Competition must not become fragmentation. Our transformation needs one voice, one standard, one purpose,” he said.
He also urged her to improve claims settlement, strengthen professionalism and disclosure while ensuring insurance reaches the more than 100 million Nigerians who have never owned an insurance policy.
“Grow penetration, not just premium. Take insurance to the 100 million Nigerians who have never seen a policy document,” the commissioner charged.
Omosehin assured the new chairman of NAICOM’s full support, saying the commission would continue to promote risk-based supervision, stronger corporate governance, and consumer protection while maintaining strict oversight of market conduct, solvency and claims settlement.
“The Nigerian insurance industry stands at a defining inflection point. The laws have changed. The capital base is changing. Now, industry leadership must embrace its historic responsibility to transform how we serve the Nigerian people,” he said.