Former President of the African Development Bank Group, Dr Akinwumi Adesina, has urged Nigerian insurance companies to prioritise prompt claims settlement, transparency and accountability, warning that public confidence in the sector depends on insurers honouring their obligations to policyholders.
Adesina said insurance companies must demonstrate the value of their services by paying legitimate claims rather than concentrating largely on collecting premiums.
He made the call on Thursday while delivering the keynote address at the Nigeria Insurance Directors Conference in Lagos, organised by the Chartered Insurance Institute of Nigeria in collaboration with the National Insurance Commission (NAICOM).
According to a statement issued by his media office on Friday, the former AfDB president challenged insurance board chairpersons and directors to take greater responsibility for claims performance, customer complaints, corporate governance and management accountability.
“When a policyholder pays an insurance premium, that policyholder deserves a premium service in return,” he said.
He argued that insurance companies could only earn lasting public trust by ensuring that customers received the protection promised under their policies when insured events occurred.
Adesina proposed that NAICOM introduce an annual public accountability and performance report detailing claims received and settled, outstanding claims, average settlement timelines, customer complaints, regulatory compliance and the financial soundness of insurance companies.
He said the industry could not demand public confidence while resisting public scrutiny.
Adesina, who was named Global Ambassador for Insurance in Nigeria and Face of Insurance at the conference, also called for stronger regulatory supervision and improved corporate governance across the sector.
He cautioned that the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025 would not automatically translate into stronger institutions.
“Recapitalisation is not the same as institutional transformation,” he said.
According to him, increased capital must be matched by disciplined underwriting, adequate technical reserves, effective risk management and stronger reinsurance arrangements.
The former AfDB president also urged insurers to expand coverage across agriculture, infrastructure, manufacturing, energy, transportation, healthcare and housing to support economic growth.
He expressed concern that insurance penetration in Nigeria remained at about 0.5 per cent of Gross Domestic Product, arguing that the sector had a significant role to play in protecting households, businesses and productive investments.
Adesina said insurance should become a stronger pillar of the Federal Government’s ambition to build a $1tn economy by protecting productive assets, managing risks and mobilising long-term capital.
He challenged industry stakeholders to work towards NAICOM’s 2031 targets of increasing insurance penetration to 10 per cent of GDP, extending active insurance coverage to 25 million Nigerians and developing 6,000 certified insurance professionals.
He also advocated measurable performance targets, quarterly monitoring and independent assessments to ensure that the industry delivered on its commitments.
“The measure of success must be outcomes, not announcements,” he said.
Adesina urged regulators, professional bodies and insurance operators to work together to build institutions capable of earning and sustaining public confidence.
“Do not just build insurance companies. Insure the nation. Protect its wealth. Finance its growth,” he said.
He added that the future of Nigerian insurance would depend on deliberate efforts to strengthen the sector and improve the protection it provides to the public.
