The Chief Client Officer of AXA Mansard Insurance Plc, Rashidat Adebisi, has urged insurance operators to complement the landmark Nigerian Insurance Industry Reform Act (NIIRA) 2025 with disciplined execution, stressing that the sector’s credibility will be measured by the number of Nigerians it protects, not just by balance sheet size.
Speaking on a televised programme, Adebisi said the reform’s recapitalisation and risk-based capital standards present a historic opportunity to reposition the industry. However, she warned that without proper execution, neither higher capitalisation nor digitisation reforms would transform customer experience or improve investor confidence.
Drawing parallels to Nigeria’s banking recapitalisation in 2004—which reduced banks from 89 to 25 but tripled capitalisation and boosted trust—Adebisi said the insurance sector must replicate that success.
“The NIIRA gives our industry the chance to play a significant role in Nigeria’s ambitious $1 trillion economy. It addresses demand, supply, and operational challenges, empowering us to do more while bolstering customer confidence,” she noted.
On the introduction of a risk-based capital framework, Adebisi described it as “a customer protection tool first, and a regulatory tool second,” explaining that by tying capital buffers to actual underwriting risks, insurers will be compelled to improve product design, pricing discipline, and prudent investment.
Addressing concerns about industry consolidation, she argued that mergers and acquisitions should be seen as strengthening the industry rather than eliminating smaller players.
“Consolidation is not loss but rebirth. We will see fewer but stronger insurers with the capacity to invest in technology, improve claims turnaround, expand distribution, and compete regionally,” she said.
Adebisi also highlighted the low penetration of insurance in Nigeria—less than 1% of GDP—compared to South Africa (17%), Kenya (3%), and Ghana (2%). She noted that proper execution of NIIRA could unlock long-term funds for infrastructure, expand risk cover for MSMEs, and enhance investor confidence in Nigeria’s financial system.
“Regulators have given us the framework. Now it is on us, the operators, to rebuild trust, invest in digitisation, and deliver inclusive products,” she added.
