Nigeria: NAICOM proposes three critical steps for sustainable progress in insurance industry

Zawya

21-04-2025

The National Insurance Commission (NAICOM) has proposed three path ways for the insurance industry to achieve sustainable progress.
The NAICOM advocated leveraging technology to innovate for inclusion that would extend coverage to the underserved, especially for those in rural communities, the informal sector, and among the youth.
It called for strengthening regulatory and data infrastructure as penetration is being expanded, and to build robust systems that support accountability, enable data-driven decision-making, and protect the consumer.
Similarly, the NAICOM sought after the promotion of insurance culture by educating and engaging the public, demonstrating how insurance is not a burden but a pathway to stability and a safety net for the future as true penetration goes beyond numbers to include cultural adoption.
The proposal was made by the Commissioner for Insurance (CFI)/CEO National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, in his goodwill message at the BusinessDay Insurance Industry Conference 2025 held in Lagos recently.
Omosehin stated, 'Charting the Path Forward as we look ahead, the road before us is long, but our destination is within reach.
'To ensure sustainable progress, I propose three critical calls to action:
Innovate for Inclusion: We must leverage technology to extend coverage to the underserved, those in rural communities, the informal sector, and among the youth.
Microinsurance, digital platforms, and inclusive product design must define our new frontier.
'Strengthen Regulatory and Data Infrastructure: As we expand penetration, we must also build robust systems that support accountability, enable data-driven decision-making, and protect the consumer. Transparency must be our watchword.
'Promote Insurance Culture: True penetration goes beyond numbers–it is about cultural adoption. We must educate and engage the public, demonstrating how insurance is not a burden but a pathway to stability and a safety net for the future'.
The CFI heightened that the journey toward resilience and growth in uncertainty is one that the insurers must embark on together, and expressed confidence that with NAICOM leading the charge, and with the unwavering cooperation of all stakeholders, Nigeria's insurance industry would not only withstand the storms ahead but thrive beyond them.
He charged the insurers to work together to build a future where every Nigerian, regardless of status or location, can confidently say: 'I am covered.'
Omosehin said the theme of the Conference 'Resilience and Growth in Uncertainty: Charting the Path for Nigeria's Insurance Industry,' could not be timely nor more relevant, as the industry navigates an era marked by both unprecedented risks and emerging opportunities.
'This gathering reflects our collective commitment to advancing Nigeria's insurance industry amid an increasingly complex and uncertain global environment.
'We are at a time when our industry, like many others, is grappling with heightened uncertainty, ranging from geopolitical instability and climate-related disasters to rapid digital transformation and fluctuating economic indicators. Yet, amid this fog of unpredictability, one constant remains: the critical role insurance plays in building national resilience,' Omosehin stated.
He pointed out that as the insurance industry regulatory institution, the NAICOM has, over the past year, demonstrated visionary leadership and a proactive posture.
He said the commission has not only regulated but also catalyzed transformation, as through its intensified engagement with stakeholders, insurers, brokers, agents, policyholders, and policymakers, the NAICOM has fostered greater transparency, deeper collaboration, and a stronger sense of shared responsibility.
'One of our most commendable strides has been in forging stronger alliances with government institutions and industry stakeholders. These partnerships have been instrumental in deepening insurance penetration across critical sectors of the economy.
Through collaboration with the Federal Road Safety Corps (FRSC), Nigerian Police Force (NPF), Federal Fire Service, and others, NAICOM has significantly strengthened the enforcement of compulsory insurances, including motor third-party insurance, insurance of public buildings, and group life insurance,' Omosehin explained.
He noted that these efforts have led to improved compliance and an expanded pool of insured Nigerians, ensuring that the protective umbrella of insurance now reaches further than ever before.
'Let me be clear: the enforcement of compulsory insurance is not merely a regulatory mandate–it is a social imperative. Today, more Nigerians are covered. More properties are insured. More lives are protected. This is a trend we must not only sustain but scale. Through digital verification systems, public awareness campaigns, and nationwide field monitoring, NAICOM is making non-compliance increasingly difficult. Compliance is no longer optional; it is the cornerstone of our collective credibility,' the CFI said.
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