The recapitalisation of the insurance industry may have strengthened insurers’ financial capacity, but the most valuable asset they must protect remains the confidence of policyholders, Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Omosehin, has said.
He maintained that trust remained ‘sacred’ in insurance, stressing that the industry ultimately survives on a promise – that a policyholder who pays a premium today can depend on the insurer to honour a valid claim tomorrow.
He spoke at the 2026 Insurance Professionals’ Forum in Abeokuta, Ogun State, where he urged operators to ensure that ongoing reforms translate into greater confidence among policyholders.
With the industry emerging from the recapitalisation exercise and operating under the Nigeria Insurance Industry Reform Act (NIIRA) 2025, Omosehin said stronger capital must ultimately be reflected in stronger institutions and better service to customers.
‘Policyholders pay premiums today based on confidence that insurers will honour valid obligations tomorrow,’ he said, describing trust as the industry’s most valuable asset.
According to him, ‘No amount of capital, technology, or regulation can compensate for a deficit of trust.’
He therefore urged insurers, intermediaries and other industry stakeholders to treat strong corporate governance, ethical leadership, transparency, accountability, fair market conduct and prompt claims settlement not merely as regulatory obligations but as the foundation for rebuilding public confidence.
Omosehin said the true test of recapitalisation would not be the size of insurers’ balance sheets alone, but their ability to retain larger risks, settle legitimate claims efficiently, invest in technology and talent and remain financially sound during periods of economic stress.
‘A resilient insurer is one that remains solvent during economic stress, honours its obligations during crises, and retains the confidence of policyholders under all circumstances,’ he said.
The Commissioner also pointed to the Insurance Policyholders’ Protection Fund established under NIIRA 2025 as an additional safety net for customers in situations involving insurer distress.
He stressed, however, that the industry’s priority should be to prevent institutional failure rather than depend on intervention after a crisis, placing prudent risk management, effective supervision and sound governance at the heart of insurance resilience.
Beyond capital and governance, Omosehin said insurers must also become more responsive to a changing risk environment, including climate-related disasters, cyber threats, technological disruption, inflation and other emerging risks that are challenging traditional insurance models.
He urged operators to embrace artificial intelligence, predictive analytics, digital platforms and other technologies to improve underwriting, claims management, fraud detection and customer engagement, while maintaining safeguards for data protection and consumer confidence.
Omosehin further called for wider insurance inclusion, saying millions of Nigerians remained uninsured or underinsured and urging operators to develop affordable, accessible and understandable products capable of reaching underserved households and businesses.
He said the industry’s future would ultimately depend on its ability to combine financial strength with professionalism, innovation, ethical conduct and, above all, the confidence of the people it exists to protect.