Innovate Boldly, Invest in Climate Data, Omosehin Tells West African Insurers
By LOVETH AZODO, Lagos
Nigeria’s Minister of State for Finance, Dr. Doris Uzoka-Anite, has called on the insurance industry to take a central role in mitigating the economic impact of climate change, warning that African economies are losing billions of dollars annually to climate-related disasters.
This is just as the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin urged insurers and reinsurers across West Africa to innovate boldly, invest in climate data and technology, and expand microinsurance to reach the informal sector.
Speaking at the ongoing West African Insurance Companies Association (WAICA) Educational Conference with theme “The West African Insurer in the Face of Climate Change” in Lagos, Dr. Uzoka-Anite who was represented by Dr Ali Mohammed, Director Home Finance, Federal Ministry of Finance said climate change should no longer be treated as merely an environmental concern but as a financial emergency threatening national budgets and economic stability.
“Traditional budgets can no longer cope,” the minister said. “We must treat climate change as a financial imperative. That is why Nigeria is advancing frameworks that combine sovereign risk insurance, regional disaster-risk pools, and public–private climate-finance mechanisms to ensure fiscal stability and rapid response,” she said.
The minister explained that the Nigerian Insurance Industry Reform Act (NIIRA 2025) is a major step toward modernizing the sector and aligning it with the country’s economic diversification goals.
According to her, the new law strengthens the capital base of operators, enhances consumer protection, and expands compulsory insurance coverage to critical sectors such as agriculture, infrastructure, and environmental risk management.
She added that the Act integrates insurance into public–private partnerships (PPPs) to support national climate resilience and infrastructure development.
“Beyond reform, NIIRA 2025 reflects our determination to build a credible, transparent, and inclusive insurance industry that supports economic transformation,” the minister stated.
Dr. Uzoka-Anite emphasized that innovation and inclusion must remain at the heart of insurance growth.
“Insurance achieves its real impact only when it reaches farmers, market women, artisans, and micro-entrepreneurs. Through micro-insurance, digital channels, and parametric products that pay instantly based on verified data, we can extend coverage and strengthen resilience at the grassroots,” she said.
She further called for regional cooperation among WAICA member states Nigeria, Ghana, Sierra Leone, Liberia, and The Gambia to develop risk-pooling and reinsurance platforms, share climate data, and build professional capacity for sustainable insurance solutions.
“The same storms that affect Nigeria affect our neighbours. Our response must also be collective,” she stressed.
Also speaking, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, reinforced the call for industry collaboration and innovation, describing the NIIRA 2025 as a “landmark legislation” that enhances financial resilience and deepens public confidence in the insurance system.
Omosehin listed key reforms under the new law to include higher capital requirements for operators, expansion of compulsory insurance classes, and integration of insurance into PPPs for infrastructure and climate projects.
He said these reforms were essential to strengthen national preparedness and ensure long-term sustainability.
“Insurance must evolve from a transactional service into a strategic enabler of development,” he said.
Omosehin added that NAICOM remains committed to enabling policies that foster cooperation between regulators, industry operators, and development partners.
“Rain does not fall only on one roof,” he said. “Climate change does not respect borders. Its impacts are shared, and so must our response be collective.”
Both the minister and the commissioner expressed confidence that with sound regulation, innovation, and regional collaboration, insurance can become a cornerstone of West Africa’s sustainable development agenda.
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