The Nigerian insurance industry must now demonstrate that the N1.079 trillion raised through recapitalisation can translate into stronger underwriting capacity, faster claims settlement, innovation and greater public confidence, the Commissioner for Insurance/Chief Executive of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, and Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, have said.
They spoke yesterday at the BusinessDay Insurance Conference 2026 in Lagos, where industry stakeholders gathered to examine the next phase of the sector following the completion of the recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The conference with: ‘From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria’s Insurance Sector’ as theme, provided the backdrop for both the regulator and the industry body to shift attention from how much capital had been raised to what the new financial strength would deliver.
Omosehin said recapitalisation should not be regarded as an achievement in itself, arguing that the real value of capital would be determined by its ability to strengthen the industry’s capacity to serve policyholders and support Nigeria’s economic development.
‘Capital without capacity is merely a number on a balance sheet,’ he said.
According to him, the industry must now ask whether the additional capital has strengthened underwriting, improved claims-paying ability, enhanced customer satisfaction and increased public confidence.
He said Nigeria’s growing population, expanding infrastructure, entrepreneurial economy, digital economy, agricultural opportunities and emerging middle class offered enormous opportunities for insurers, but operators must have the capacity to take advantage of them.
Omosehin said capacity should translate into the ability to underwrite major infrastructure and complex risks, retain more risks within the domestic market, develop products for emerging risks and extend insurance protection to underserved Nigerians.
Mrs Nwachukwu agreed that recapitalisation was only the beginning, saying the industry must now demonstrate its value to policyholders.
‘The value of recapitalisation will be judged by what it delivers to policyholders, not by what it says on a balance sheet,’ she said.
She asked whether businesses would now find it easier to insure larger risks locally, whether families would experience faster and fairer claims settlement and whether Nigerians outside the traditional insurance market would begin to see insurance as relevant to their lives.
Nwachukwu said the recapitalisation had produced an industry with capital in excess of N1.079 trillion, while 50 insurance and reinsurance companies successfully met the new capital requirements.
She said the exercise had also attracted domestic and foreign investment, reflecting investor interest in a stronger regulatory environment and the growth opportunities in the sector.
But she cautioned operators against allowing stronger balance sheets to encourage undisciplined growth.
‘More capital gives us room to write bigger risks and grow faster. It must go hand in hand with sound underwriting, prudent risk management and adequate pricing,’ she said.
Both speakers also identified innovation as critical to expanding the market.
Omosehin said the expectations of insurance consumers had changed, with customers demanding the convenience, speed, transparency and simplicity offered by digital banks, technology companies, e-commerce platforms and telecommunications providers.
He urged insurers to deploy data analytics, artificial intelligence and digital platforms responsibly to simplify insurance, improve service delivery and develop affordable products.
Nwachukwu similarly called for greater use of technology, InsurTech partnerships, digital distribution channels and products targeted at underserved segments as part of efforts to deepen insurance penetration.
But beyond capital and technology, the two speakers converged on one issue: trust.
Omosehin described trust as the ‘invisible foundation’ of the insurance industry, while Nwachukwu called it ‘the currency of our industry.’
The Commissioner said the most visible demonstration of insurance value was at the point of claims, stressing that every prompt and fair settlement strengthened confidence, while delayed claims and unresolved complaints could damage it.
NAICOM, he said, would continue to prioritise consumer protection and claims settlement as part of its regulatory agenda.
Nwachukwu said the NIA would also work with NAICOM to promote stronger market conduct and claims practices, including claims excellence and greater disclosure of claims payments.
She said the association would support capacity development in specialised areas including energy insurance, climate-related insurance, agricultural insurance, reinsurance, risk management and governance.
Omosehin also stressed the importance of human capital, saying the industry would require professionals with new skills to manage increasingly complex risks ranging from cyber threats and climate change to artificial intelligence, supply-chain disruptions and geopolitical uncertainties.
He said the insurance industry had a strategic role to play in Nigeria’s economic development by supporting entrepreneurship, investment, financial inclusion and resilience.
Nwachukwu urged stakeholders to ensure that the opportunities created by NIIRA were not lost to complacency, saying the next phase required disciplined execution and collaboration among insurers, reinsurers, brokers, regulators, investors, technology providers and the media
The NIA Chairman said the association would continue to provide advocacy, regulatory guidance and capacity-building support to help operators convert stronger capital into better service, faster claims settlement and deeper market penetration.
Omosehin, meanwhile, said the journey from capital to capacity required collective responsibility, with regulators providing oversight, insurers driving innovation and operational excellence, brokers strengthening advisory services and the media continuing to educate the public.
He said the industry’s next chapter should be measured by its ability to convert capital into capacity, capacity into innovation and innovation into trust.
‘If we remain committed to this vision, future generations will look back on this period not merely as an era of reform, but as the moment when the Nigerian insurance industry truly came of age,’ Omosehin said. Sent from Yahoo Mail for iPhone