Insurance must drive Nigeria’s $1trn economy – NAICOM

The Nigerian insurance industry must strengthen its financial capacity, embrace technology, improve claims settlement and rebuild public confidence to play a stronger role in driving the country’s economic transformation, the National Insurance Commission and industry experts have said.

The stakeholders spoke on Thursday at the 2026 Insurance Professional Forum of the Chartered Insurance Institute of Nigeria, held in Abeokuta, Ogun State, with the theme, “The Economics of Risk: Sustaining a Resilient Insurance Industry.”

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, said insurance was more than a financial service, describing it as an important infrastructure for economic development and stability.

Omosehin said the industry had entered a new phase following recent regulatory reforms, with stronger expectations around financial soundness, governance, policyholder protection, and professional standards.

According to him, the changing risk environment, characterised by economic volatility, climate-related disasters, technological disruption, cyber threats, geopolitical uncertainties and changing consumer expectations, requires insurers to move beyond traditional approaches to risk management.

He said insurers must increasingly deploy predictive analytics, enterprise risk management, scenario modelling, climate intelligence, and other advanced technologies to strengthen their ability to withstand shocks.

The commissioner said the recapitalisation exercise was not simply about increasing the size of insurers’ balance sheets, but about building institutions capable of retaining larger risks, investing in technology and human capital, underwriting major national projects and meeting their obligations during periods of economic stress.

He said the success of the exercise would ultimately be measured by the resilience of insurance institutions and the confidence of policyholders. “Insurance is a promise,” Omosehin said, stressing that insurers must ensure that valid claims are handled promptly and transparently.

He identified public confidence as the industry’s most valuable asset, warning that no amount of capital, technology, or regulation could substitute for trust.

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Omosehin also disclosed that the regulator had introduced a Policyholder Protection Fund, supported by operators, to provide an additional layer of protection for policyholders in the event of institutional failures. He, however, stressed that the fund should not become an excuse for insurers to neglect their obligations to policyholders.

The NAICOM boss urged insurance professionals to continuously upgrade their skills as artificial intelligence, machine learning, predictive analytics, and digital platforms transform underwriting, claims management, customer engagement, and risk assessment. He also called for stronger collaboration among insurers, reinsurers, brokers, government agencies, technology providers, professional bodies, educational institutions, and consumers.

Earlier, in his welcome address, the President and Chairman of the Council of CIIN, Akinjide Orimolade, said the forum provided an opportunity for insurance professionals to examine practical strategies for strengthening the resilience and sustainability of the industry.

Orimolade said risk was at the heart of every economic activity, making insurance a critical enabler of economic growth, business continuity, and social stability. He said technological advancement, data-driven decision-making, innovative insurance products, and improved customer service would be critical to increasing insurance penetration.

The CIIN president also emphasised the importance of professional ethics, transparency, integrity, and continuous professional development in rebuilding public confidence in the sector.

Speaking on the forum’s theme, the Managing Director of Sahara Power Group, Kola Adesina, said Nigeria could not achieve sustainable economic growth without developing stronger mechanisms for managing risk.

Adesina said every entrepreneur, farmer, bank and company that invested in new ventures was exposed to risk, adding that the objective should not be to eliminate risk but to ensure that adverse events did not permanently destroy economic value. He said insurance played a critical role by pooling risks, transferring financial exposure, and enabling individuals and businesses to recover from unexpected losses.

Adesina cited fire incidents as an example, noting that the economic consequences of a disaster extended beyond the immediate physical loss. He said the destruction of a business could result in job losses, impaired bank loans, reduced government revenue, lower household consumption, and the permanent disappearance of productive capacity.