Nigeria’s insurance industry has been challenged to translate the N1.079 trillion raised through its recent recapitalisation exercise into stronger underwriting capacity, improved claims settlement, innovation and wider market reach.
The Commissioner for Insurance and Chief Executive of the National Insurance Commission, Olusegun Ayo Omosehin, and the Chairman of the Nigerian Insurers Association, Ebelechukwu Nwachukwu, made the call at the BusinessDay Insurance Conference 2026 in Lagos.
The conference, themed “From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria’s Insurance Sector,” focused on what insurers should deliver following the completion of the recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025.
Capital must translate into capacity
Omosehin said the amount of capital raised should not be viewed as the final achievement of the reform.
He argued that the real test would be whether the stronger financial position of insurers improves their ability to serve policyholders and support economic activity.
“Capital without capacity is merely a number on a balance sheet,” Omosehin said.
He said insurers must demonstrate improvements in underwriting, claims-paying ability and customer experience, while also working to rebuild public confidence in insurance.
According to him, Nigeria’s expanding population, infrastructure projects, entrepreneurial activity, digital economy, agricultural opportunities and emerging middle class present significant opportunities for the industry.
However, he said insurers would need sufficient capacity to underwrite major infrastructure projects and complex risks, retain more business domestically, develop products for emerging risks and extend protection to underserved sections of the population.
50 companies meet new capital requirements
Nwachukwu said the recapitalisation exercise had produced an industry with more than N1.079 trillion in capital, with 50 insurance and reinsurance companies meeting the new requirements.
She said the exercise had also attracted both local and international investment, reflecting interest in the sector’s regulatory environment and growth prospects.
But Nwachukwu cautioned that stronger balance sheets should not lead insurers to pursue growth without adequate controls.
She said increased capital should be accompanied by disciplined underwriting, appropriate pricing and effective risk management.
The NIA chairman said the industry’s performance would ultimately be measured by its impact on policyholders, including whether businesses could insure larger risks locally and whether customers experienced faster and fairer claims settlements.
Technology becomes central to expansion
Both industry leaders identified technology and innovation as important to the next phase of insurance development.
Omosehin said consumer expectations had changed as Nigerians increasingly experienced the speed and convenience provided by digital banks, telecommunications companies, technology firms and e-commerce platforms.
He urged insurers to responsibly deploy data analytics, artificial intelligence and digital platforms to simplify insurance processes, improve service delivery and create more affordable products.
Nwachukwu similarly called for stronger InsurTech partnerships, digital distribution channels and products designed for underserved market segments.
Claims and trust remain critical
Beyond financial strength and technology, the speakers identified trust as a major factor in the industry’s relationship with customers.
Omosehin said claims settlement remained one of the clearest ways insurers demonstrate their value to policyholders. He noted that prompt and fair claims payments could strengthen confidence, while delays and unresolved complaints could have the opposite effect.
He said NAICOM would continue to focus on consumer protection and claims settlement as part of its regulatory priorities.
Nwachukwu said the NIA would work with the regulator to promote better market conduct and claims practices, including initiatives around claims excellence and greater disclosure of claims payments.
New skills needed for emerging risks
Omosehin also highlighted the need to strengthen human capital as insurers confront increasingly complex risks.
He identified areas such as cyber threats, climate change, artificial intelligence, supply-chain disruptions and geopolitical uncertainties as challenges that would require new expertise within the industry.
Nwachukwu said the NIA would support capacity development in specialised fields, including energy insurance, climate-related insurance, agricultural insurance, reinsurance, risk management and corporate governance.
She also urged stakeholders to maximise the opportunities created by the Nigerian Insurance Industry Reform Act rather than become complacent after the recapitalisation exercise.
Industry urged to work together
Nwachukwu said the next phase would require cooperation among insurers, reinsurers, brokers, regulators, investors, technology providers and the media.
She added that the association would continue providing advocacy, regulatory guidance and capacity-building support to help operators convert stronger capital positions into better services, faster claims settlement and broader insurance penetration.
Omosehin said the transformation would require collective responsibility, with regulators providing oversight, insurers pursuing innovation and operational efficiency, brokers improving advisory services and the media supporting public education.
He said the industry’s progress should ultimately be measured by how effectively it converts capital into capacity, capacity into innovation and innovation into greater public trust.
