The National Insurance Commission (NAICOM) has challenged insurance companies to shift competition away from premium pricing and instead focus on prompt claims settlement and quality service as the industry prepares for a new phase of reforms.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, gave the charge on Friday in Abuja during the investiture of Mrs. Ebelechukwu B. Nwachukwu as the 27th Chairman and the first female Chairman of the Nigerian Insurers Association (NIA).
Omosehin said the industry’s greatest challenge was no longer inadequate capital but a deficit of public trust, stressing that timely claims payment would be critical to rebuilding confidence in insurance.
“Our biggest deficit is not capital. It is trust,” he said.
He urged insurers to make claims excellence a market-wide culture by ensuring prompt settlement of genuine claims, clear communication with policyholders and greater transparency in claims performance.
“Every claim paid promptly, every policy explained clearly, every customer treated fairly, adds a block to the trust we must rebuild. Let us publish our claims ratios. Let us compete on service. Let the Nigerian people feel the difference,” he said.
The insurance commissioner noted that the investiture of Nwachukwu came at a defining period in the industry’s transformation, following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the ongoing recapitalisation exercise.
According to him, the recapitalisation deadline of July 31, 2026, is expected to usher in stronger and better-capitalised insurance companies capable of underwriting larger risks and supporting Nigeria’s ambition of building a $1 trillion economy by 2030.
“This is not recapitalisation for its own sake. It is recapitalisation for capacity, for retention and for credibility,” Omosehin said.
He expressed satisfaction with the progress made by operators in meeting the new minimum capital requirements, saying the capital verification exercise had shown that many institutions had already met or exceeded the prescribed thresholds.
Omosehin added that the industry’s improved financial strength would enhance its resilience and position it to play a more strategic role in supporting economic growth.
He also called on the Nigerian Insurers Association to work more closely with the commission and other stakeholders to enforce compulsory insurance laws, lamenting that compliance remained below 30 per cent despite legal provisions covering six compulsory classes of insurance.
“The Commission cannot enforce alone. We need the market to insist on compliance as a condition for doing business,” he said.
He urged insurers to partner with state governments, the Federal Road Safety Corps, the Nigeria Police Force and other enforcement agencies to improve compliance, noting that stronger enforcement would protect lives, safeguard public funds and deepen insurance penetration.
On innovation, the NAICOM boss said the industry’s penetration rate remained below one per cent because products and distribution channels had failed to meet the needs of millions of Nigerians.
He encouraged insurers to leverage the commission’s Regulatory Sandbox and invest in digital distribution, embedded insurance, microinsurance, Takaful and parametric insurance products targeted at agriculture and climate-related risks.
According to him, insurance should become accessible to every farmer, trader and household across the country.
Omosehin assured operators that NAICOM would continue to provide an enabling regulatory environment through risk-based supervision, stronger corporate governance standards and enhanced consumer protection under the new insurance reform law.
He, however, stressed that the commission would remain firm on issues relating to market conduct, solvency requirements and prompt settlement of claims.
Congratulating Nwachukwu on her emergence as the first female chairman of the NIA, Omosehin described her appointment as both historic and timely, expressing confidence in her ability to unite the market and drive the next phase of industry transformation.
He urged the new NIA chairman to strengthen collaboration among operators, raise standards in claims management, professionalism and disclosure, and expand insurance coverage to millions of Nigerians who have never purchased an insurance policy.
“The laws have changed. The capital base is changing. Now, industry leadership must embrace its historic responsibility to transform how we serve the Nigerian people,” he said.
Nwachukwu succeeds Mr. Kunle Ahmed, whose tenure, according to Omosehin, was marked by strong support for the passage of the Nigerian Insurance Industry Reform Act, 2025, and sustained commitment to the development of Nigeria’s insurance industry.
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