Former President of the African Development Bank Group, Akinwumi Adesina, has challenged Nigerian insurance companies to become more transparent by publicly disclosing their claims settlement records, customer complaints and corporate governance performance.
Adesina maintained that greater accountability and openness were necessary to rebuild public confidence in Nigeria’s insurance industry, particularly amid concerns about the sector’s low penetration and public perception.
He made the call at the Nigeria Insurance Directors Conference organised by the Chartered Insurance Institute of Nigeria in collaboration with the National Insurance Commission (NAICOM) in Lagos.
The former AfDB president proposed that NAICOM introduce an annual public accountability and performance report to monitor the activities and performance of insurance companies operating in the country.
According to him, the proposed report should provide detailed information about claims received and settled, outstanding claims, average settlement periods, customer complaints, regulatory compliance, financial stability and corporate governance.
Adesina argued that insurance companies could not expect Nigerians to trust their services while avoiding public scrutiny of their performance.
He stressed that the most important responsibility of an insurance company was to honour its obligations to policyholders, particularly when they experienced unexpected losses.
He explained that Nigerians who regularly pay insurance premiums deserved quality services and prompt settlement of legitimate claims whenever the need arose.
“When a policyholder pays an insurance premium, that policyholder deserves a premium service in return,” he said.
Adesina Reveals Why Nigerians Are Losing Confidence In Insurance
The former AfDB president also called on the boards of insurance companies to take greater responsibility for claims management, customer complaints and corporate governance.
He maintained that insurance companies must demonstrate accountability at the highest management levels rather than treating claims settlement as an ordinary administrative responsibility.
Adesina further identified Nigeria’s estimated insurance penetration of approximately 0.5 per cent of Gross Domestic Product (GDP) as a major concern.
He said the figure reflected a significant gap in the country’s ability to protect households, businesses and productive investments against financial risks.
To address the situation, he urged insurance operators to expand their services across critical sectors, including agriculture, infrastructure, manufacturing, energy, transportation, healthcare and housing.
According to him, insurance must become an important instrument for protecting Nigeria’s economic assets and supporting sustainable development.
Adesina Speaks On Insurance Sector Recapitalisation
Adesina also addressed the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025, warning that increasing the capital base of insurance companies would not automatically transform the industry.
He argued that stronger financial resources must be accompanied by effective management, responsible corporate governance and improved service delivery.
“Recapitalisation is not the same as institutional transformation,” he stated.
He explained that insurance companies needed disciplined underwriting practices, adequate technical reserves, effective risk management systems and stronger reinsurance arrangements to remain financially stable.
The former AfDB president equally called on NAICOM to strengthen risk-based supervision and ensure that insurance operators were held accountable for measurable performance.
He maintained that the success of the industry should not be determined solely by the amount of capital raised or premiums collected.
Instead, he said the real measure of success should be the quality of services delivered to policyholders and the level of confidence Nigerians have in insurance providers.
“The measure of success must be outcomes, not announcements,” Adesina said.
His remarks have brought renewed attention to the need for greater transparency, stronger corporate governance and improved customer protection in Nigeria’s insurance industry.
