The National Insurance Commission and the Nigerian Insurers Association have urged insurance companies to translate the N1.079 trillion raised through the industry’s recapitalisation exercise into stronger underwriting capacity, improved claims service, innovation and wider market coverage.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, and Chairman of the NIA, 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 the industry’s priorities following the completion of the recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025.
Omosehin said the additional capital should not be viewed as an end in itself, arguing that its significance would ultimately depend on the capacity it creates for insurers to serve policyholders and support economic activity.
He said the industry should assess whether the recapitalisation had translated into stronger underwriting, improved claims-paying capacity, better customer experience and greater public confidence.
According to him, Nigeria’s expanding infrastructure, entrepreneurial activity, digital economy, agricultural opportunities and growing middle class present significant opportunities for insurers.
He said stronger capital positions should enable companies to underwrite larger and more complex risks, retain more business within the domestic market, develop products for emerging risks and extend insurance services to underserved segments of the population.
Nwachukwu similarly said the completion of recapitalisation marked the beginning of a new phase for the industry rather than the conclusion of its transformation.
She said the outcome should be measured by the value delivered to policyholders, including whether businesses could obtain coverage for larger risks locally and whether customers experienced improvements in claims settlement.
Nwachukwu disclosed that 50 insurance and reinsurance companies had met the new capital requirements, contributing to an industry capital base exceeding N1.079 trillion.
She added that the recapitalisation exercise had attracted both domestic and foreign investment, which she said reflected investor interest in the sector and the opportunities associated with a stronger regulatory framework.
However, she cautioned insurers against pursuing rapid expansion without corresponding improvements in risk management and underwriting discipline.
According to her, increased capital provides room for insurers to take on larger risks and expand their businesses, but growth must be supported by appropriate pricing, prudent underwriting and sound risk management.
Innovation, technology take centre stage
The two industry leaders also identified technology and innovation as important drivers of the next phase of insurance development.
Omosehin said customer expectations were changing as Nigerians became accustomed to the speed, convenience and transparency offered by digital banks, technology companies, e-commerce platforms and telecommunications providers.
He urged insurers to respond by adopting technologies that simplify insurance processes and improve the customer experience.
Among the tools he highlighted were data analytics, artificial intelligence and digital platforms, which could be deployed to improve service delivery and develop products capable of meeting the needs of different customer segments.
Nwachukwu also called for stronger collaboration between insurers and InsurTech companies, wider use of digital distribution channels and the development of products designed for people and businesses that remain underserved by traditional insurance channels.
The focus on technology, she said, should complement the industry’s stronger capital position by helping insurers expand access and improve the relevance of their products.
The conference therefore shifted attention from the amount of capital raised during the recapitalisation exercise to how the additional financial capacity could be deployed to strengthen the industry, improve customer outcomes and support broader economic activity.
For the regulator and the industry association, the next phase will require insurers to combine stronger balance sheets with disciplined underwriting, innovation, improved service delivery and efforts to deepen insurance penetration.
