Nigeria’s insurance industry needs to complement its recapitalisation efforts with stronger technical expertise, technology, governance and human capital if it is to achieve long-term growth, the Nigerian Insurers Association has said.
The association’s Director-General, Mrs Bola Odukale, made the call while delivering a keynote address at the 2026 Annual Retreat of the Risk, Audit and Compliance Technical Committee in Abeokuta, Ogun State.
The retreat was held under the theme, “From Capital to Capability: Driving Resilience, Innovation & Trust Through Governance, Risk & Compliance.” Odukale was represented at the event by the NIA Director of Operations, Mr Lanre Ojuola.
Odukale noted that although increased capital gives insurers greater financial capacity to withstand shocks, funding alone would not be enough to address increasingly complex risks or improve industry performance.
She said insurers also needed effective systems and competent professionals capable of managing risks, meeting regulatory requirements, strengthening institutions and maintaining the confidence of policyholders.
According to her, governance, risk and compliance should no longer be viewed primarily as expenses but should be integrated into insurers’ broader business strategies as tools for improving competitiveness.
She encouraged insurance companies to adopt technology-enabled assurance systems, including automated monitoring, advanced data analytics and artificial intelligence-supported compliance solutions.
Odukale also stressed the importance of developing specialised expertise in areas such as commercial, marine, cyber and energy insurance, where emerging risks require increasingly sophisticated underwriting and risk-management capabilities.
The retreat also featured discussions on the growing role of artificial intelligence in the insurance industry.
The Managing Partner of Risk Universe Consulting, Saheed Bashiru, said AI was transforming insurance globally, although the pace of adoption differed across markets.
In his presentation, titled “Artificial Intelligence Adoption & Optimisation,” Bashiru said Nigeria’s regulatory environment had created a basis for responsible AI deployment, adding that risk, audit and compliance teams should help organisations adopt the technology safely rather than prevent its use.
He proposed a five-stage approach to AI adoption: assess, pilot, scale, govern and optimise.
Bashiru recommended that insurers use real-time dashboards to monitor AI models for performance changes, bias, model drift and incidents. He also advocated regular risk-based audits of AI applications and periodic operational reports to company boards.
He further urged insurance firms to build AI knowledge among their employees and develop career paths combining artificial intelligence with risk-management expertise.
He advised Chief Financial Officers to consider both the potential return on AI investments and the cost of failing to adopt useful technologies when preparing budgets and allocating capital.
For Chief Audit Executives, Bashiru recommended maintaining inventories of AI use cases and conducting baseline audits to establish appropriate controls.
Meanwhile, the Chairman of the RACC, Olugbenga Akinlalu, said the industry needed to ensure that the stronger balance sheets expected from recapitalisation were supported by equally strong institutional structures.
Akinlalu, who is also Group Head of Internal Audit at Continental Reinsurance Holdings, said improved capitalisation should be accompanied by investment in skilled personnel, technology, governance and risk-management systems.
He urged risk, audit and compliance professionals to expand their roles beyond traditional assurance functions and contribute more directly to business strategy and growth.
Akinlalu said the industry’s future resilience would depend not only on financial strength but also on competent professionals, ethical practices, effective governance and institutions capable of responding to emerging risks.
The RACC also unveiled an industry-focused magazine during the retreat.
