The National Insurance Commission (NAICOM) has launched a new programme to move Nigeria’s insurance industry into a broader phase of growth, with greater attention to digital distribution, younger customers, women, small businesses and improved service to policyholders.
The Insurance Sector Strengthening Programme (ISSP), launched in Abuja in partnership with NAICOM on Thursday, is expected to build on the industry’s recently completed recapitalisation exercise by focusing on the next major challenge: taking insurance products to millions of Nigerians who remain uninsured or under-insured.
Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, said the industry could no longer rely mainly on large offices in major cities while ignoring changing consumer behaviour and the growing importance of digital platforms.
He said the sector must now develop distribution and sales systems that can reach young Nigerians and other underserved groups wherever they are.
‘The focus in the last 12 months has been on the underwriting end,’ Omosehin said, referring to the recapitalisation exercise. ‘Now it is the turn of the industry to help us channel proper distribution techniques and frameworks that will enable Nigeria to enjoy the benefits of the change.’
The Commissioner said the industry risked losing the opportunity created by recapitalisation if operators failed to understand how the younger population interacted with financial services.
‘If we continue to focus more on building gigantic offices across the big cities and we do not understand the dynamics of how distribution, how sales and engagement with the youth is changing, everyone has lost it,’ he said.
The shift in emphasis comes shortly after NAICOM completed the recapitalisation exercise, with 43 insurance and reinsurance companies meeting the new capital requirements. The Commission has also begun issuing new licences to compliant operators.
Omosehin said the new programme was designed to ensure that stronger insurance companies translate their improved financial capacity into wider market coverage, better products and stronger customer service.
He described the ISSP as a ‘landmark initiative’ aimed at making the Nigerian insurance industry more inclusive, innovative, resilient and trusted, while increasing its contribution to national development.
According to him, Nigeria’s large economy has not translated into a sufficiently deep insurance market, as many Nigerians still lack adequate insurance protection.
The Commissioner attributed the weak level of penetration partly to limited public understanding, lack of trust, capacity gaps and fragmented distribution channels.
He said these problems should be treated as opportunities for the industry to develop new solutions rather than as permanent barriers to growth.
The ISSP will therefore focus on six broad areas: advocacy, policy awareness and education, capacity building, gender inclusion, youth engagement, and MSME and value-chain development.
A major part of the programme will be public education, particularly in rural communities, where limited knowledge of insurance products remains a barrier to adoption.
Omosehin said insurance could not become a widely used financial service if Nigerians did not understand its practical benefits as a means of protecting their income, businesses, property and other assets against risks.
The programme will also promote digital platforms, technology-based solutions and data-driven approaches to make insurance easier to access and more relevant to consumers.
The Commissioner said changing customer expectations made digital transformation a necessity rather than an option.
‘Customers now expect convenience, transparency and personalised solutions,’ he said, adding that the industry must respond to these expectations if it wants to attract new customers.
The digital push is also consistent with NAICOM’s wider efforts to use insurtech to expand access to underserved Nigerians. In June, the Commission licensed an insurtech partner as part of efforts to improve digital distribution of insurance products.
Omosehin said women and young people would receive special attention under the ISSP because of their economic importance and potential to expand the insurance market.
The programme will seek to bring these groups into the mainstream through products designed around their needs, new engagement methods and career development opportunities.
MSMEs will also be a major target because many small businesses operate without sufficient insurance cover despite their importance to employment, productivity and innovation.
The Commissioner said wider insurance coverage for MSMEs would help businesses withstand shocks, maintain operations and achieve sustainable growth.
But while calling for greater innovation and market expansion, Omosehin warned insurance operators that growth must not weaken financial stability or consumer protection.
He said NAICOM would continue to insist on sound financial institutions, ethical conduct, transparency, fair treatment of customers and prompt settlement of genuine claims.
‘Market expansion and innovation will be supported by the regulator, but not at the expense of solvency of our institutions, not at the expense of transparency or public trust,’ he said.
This position is particularly important as the industry enters the post-recapitalisation era. NAICOM has previously said that the new capital base should strengthen financial capacity, governance and competitiveness while enabling insurers to develop new products and deepen penetration.
Omosehin also called for an end to the long-standing public perception that insurance companies are interested in collecting premiums but reluctant to pay claims.
He said the industry must provide Nigerians with real value for the premiums they pay, arguing that improved service and timely claims payment would be central to rebuilding confidence.
‘The era of Nigerians seeing us as very quick at collecting premiums and taking back seats when claims are reported should totally be from our national psyche,’ he said.
For the Commissioner, the success of the ISSP will ultimately depend on whether insurance becomes a service Nigerians trust and actively use, rather than one purchased only when required by law or by financial institutions.
The programme also places strong attention on human capital. Omosehin said insurance professionals would need new skills as technology changes how financial services are delivered and customers demand faster, better service.
The planned training and professional development programmes are expected to improve technical competence, professionalism and performance across the insurance value chain.
The Commissioner also linked the ISSP to the Nigeria Insurance Industry Reform Act 2025, saying the programme supports the law’s objectives of increasing insurance penetration, improving professionalism, promoting innovation, strengthening consumer protection and raising the sector’s contribution to the economy.
The launch also received the backing of the National Assembly. Mr. Victor Inedu, who represented the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Tokunbo Abiru, at the event, said the ISSP had come at an important stage in Nigeria’s economic reforms.
He said a strong insurance industry was essential because it protects people and businesses, supports investment, mobilises long-term capital and gives businesses the confidence to take risks and expand.
Abiru commended NAICOM for completing the recapitalisation exercise, describing it as an important step toward building stronger, more resilient insurance companies capable of underwriting large risks and supporting major investments.
He said the new capital requirements should not be viewed simply as a regulatory exercise but as part of efforts to prepare the industry for a bigger role in Nigeria’s economic development.
The senator also disclosed that the Senate has passed the Insurance Regulatory Commission Bill 2026, expressing hope that the House of Representatives would pass the legislation in September.
According to him, the proposed legislation would further strengthen NAICOM and improve its ability to carry out its regulatory responsibilities.
Abiru, however, cautioned that new laws and stronger regulation would not automatically transform the sector.
‘The real test lies in effective implementation,’ he said, adding that reforms must lead to stronger institutions, better governance, improved consumer protection, greater innovation, higher insurance penetration and deeper public trust.
The Senate representative also called for cooperation among the legislature, executive, NAICOM, insurance companies, professionals, practitioners and the public.
Under the arrangement, NAICOM will provide policy direction and oversight, while operators are expected to develop innovative products and wider distribution channels. Professional bodies are expected to support standards and skills development, development partners to provide technical assistance, educational institutions to develop future talent, and the media to improve public awareness.