NAICOM: Insurance Growth Must Not Come at Expense of Solvency, Consumer Protection

By LOVETH-AZODO CHIJIOKE, Lagos

The National Insurance Commission (NAICOM) has warned insurance operators that the next phase of industry growth must be anchored on adequate capitalisation, strong corporate governance, responsible underwriting, transparency and prompt settlement of genuine claims.

The Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, gave the warning in Abuja on Thursday at the official launch of the Insurance Sector Strengthening Programme (ISSP), a new initiative aimed at transforming the Nigerian insurance industry.

Omosehin said while NAICOM would continue to support innovation and market expansion, operators must not pursue growth at the expense of policyholder protection, solvency and public confidence.

According to him, sustainable growth requires more than regulation, stressing that discipline, accountability, professionalism and consumer confidence must remain central to the development of the sector.

He identified low insurance penetration, limited public understanding of insurance products, trust concerns, capacity gaps and fragmented distribution channels as some of the challenges limiting the industry’s potential.

The Commissioner said the ISSP was designed to address these challenges through six key areas: advocacy and policy, awareness and education, capacity building, gender inclusion, youth engagement, and development of micro, small and medium enterprises (MSMEs) and their value chains.

He noted that improving public understanding of insurance was critical to increasing uptake, while stronger professional capacity would be required as technology and customer expectations continue to evolve.

Omosehin also stressed the need for greater participation of women, young people and MSMEs in the insurance market, noting that expanding coverage among these groups could improve the sector’s relevance and contribution to economic development.

The Commissioner said the programme aligned with the objectives of the Nigeria Insurance Industry Reform Agenda (NIIRA 2025), particularly in the areas of market penetration, professionalism, innovation, consumer protection and economic growth.

He further said digital transformation was becoming increasingly important to the future of insurance, urging the industry to embrace digital platforms, insurtech solutions and data-driven approaches to improve service delivery and competitiveness.

Omosehin said the ultimate objective of the reforms was to rebuild public trust in insurance, which, he described as the foundation of a successful insurance market.

He assured stakeholders that NAICOM would continue to provide regulatory support while insisting on compliance, ethical conduct and service excellence.

The ISSP brings together regulators, insurers, intermediaries, technology providers, development partners, professional bodies, educational institutions and consumers in a coordinated effort to strengthen the industry.

Omosehin said the success of the initiative would ultimately depend on collective action, stressing that the future of insurance in Nigeria could be transformed from an underutilised financial service into a stronger instrument for economic resilience, social protection and wealth creation.