Nigeria’s ambition of building a $1tn economy could place a much bigger responsibility on the insurance industry, with the National Insurance Commission urging operators to strengthen their financial capacity, embrace advanced technology and restore public confidence.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, said the industry could no longer operate primarily as a conventional financial service if it was to support Nigeria’s next phase of economic expansion.
He spoke at the 2026 Insurance Professional Forum of the Chartered Insurance Institute of Nigeria in Abeokuta, Ogun State, where industry stakeholders examined how insurers could build greater resilience amid mounting economic and emerging risks.
With the theme, “The Economics of Risk: Sustaining a Resilient Insurance Industry,” the forum placed the industry’s capacity to absorb and transfer risk at the centre of discussions on Nigeria’s economic future.
Bigger economy, bigger insurance capacity
Omosehin said insurance should be viewed as critical economic infrastructure capable of supporting investment, business continuity and financial stability.
For the industry to perform that role, however, he said insurers must become financially stronger and capable of retaining significantly larger risks.
The NAICOM chief said the ongoing recapitalisation drive should therefore be viewed as more than a balance-sheet exercise.
According to him, stronger capital positions should enable insurers to underwrite major national projects, invest in technology and human resources and continue meeting policyholder obligations even when the economy comes under severe pressure.
The real test, he suggested, would not simply be how much capital insurers raise, but whether the exercise produces institutions capable of surviving shocks and delivering on their promises to customers.
Claims payment remains the trust test
At the heart of NAICOM’s message was a familiar but critical challenge: public confidence.
Omosehin described insurance as “a promise,” placing timely and transparent claims settlement at the centre of the industry’s responsibility to policyholders.
For an industry seeking a larger role in a rapidly expanding economy, the ability to pay legitimate claims efficiently could prove as important as capital strength.
The commissioner warned that capital, technology and regulation could not replace trust, making customer experience and claims performance strategic issues rather than merely operational concerns.
The message puts pressure on insurers to demonstrate that stronger balance sheets will translate into better service and greater protection for policyholders.
New risks are changing the insurance game
NAICOM also warned that the risk environment confronting Nigerian businesses and households is becoming increasingly complex.
Economic instability, climate-related disasters, cyber threats, technological disruption, geopolitical uncertainty and changing customer expectations are creating risks that traditional underwriting approaches may struggle to address.
Omosehin urged insurers to make greater use of predictive analytics, enterprise risk management, scenario modelling and climate intelligence.
Such tools, he said, would help operators identify emerging threats earlier and improve their ability to withstand economic and environmental shocks.
The shift could fundamentally change how Nigerian insurers assess risks, price policies and manage claims.
AI puts pressure on traditional insurance models
Artificial intelligence and machine learning are also expected to play a growing role across the insurance value chain.
From underwriting and claims processing to customer engagement and risk assessment, digital platforms and data-driven systems are increasingly becoming central to the industry’s competitiveness.
Omosehin challenged insurance professionals to continually upgrade their skills as technology reshapes the sector.
For insurers, the implication is clear: recapitalisation without technological transformation may not be enough to compete in a market where speed, data and personalised customer service are becoming increasingly important.
Policyholder Protection Fund adds another safety net
The NAICOM commissioner also disclosed the introduction of a Policyholder Protection Fund, supported by insurance operators, to provide an additional layer of protection where institutional failures occur.
However, he cautioned that the existence of the fund should not encourage insurers to become complacent about their obligations.
The primary responsibility, he stressed, remains with individual insurers to honour valid claims and protect policyholders.
CIIN calls for ethics and professional renewal
President and Chairman of the Council of the Chartered Insurance Institute of Nigeria, Akinjide Orimolade, said the industry must combine technological advancement with stronger professional standards.
He identified data-driven decision-making, innovative products and improved customer service as important tools for increasing insurance penetration.
But technology alone, he noted, would not solve the sector’s trust deficit.
Professional ethics, transparency, integrity and continuous development must remain central to the industry’s efforts to rebuild confidence among consumers.
Collaboration becomes critical
The stakeholders also called for closer cooperation across the insurance ecosystem, including insurers, reinsurers, brokers, government agencies, technology companies, professional bodies, educational institutions and consumers.
As Nigeria pursues a larger and more diversified economy, insurers are expected to play a greater role in protecting infrastructure, businesses, investments and households against increasingly sophisticated risks.
For NAICOM, the message is that the industry must evolve before it can fully support that ambition.
A stronger capital base may provide the foundation, but technology, effective claims management, professional competence and public trust will ultimately determine whether Nigeria’s insurance industry can become a major engine of a $1tn economy.
