The Nigerian Insurers Association (NIA) has urged insurance companies to translate the N1.079 trillion raised through the industry’s recapitalisation exercise into faster claims settlement, stronger underwriting capacity and improved customer service.
The association warned that stronger balance sheets would have limited value if insurers failed to meet their contractual obligations and deliver better value to policyholders.
NIA Chairman, Ebelechukwu Nwachukwu, said the industry must move beyond celebrating the capital-raising exercise and demonstrate measurable improvements in service delivery, innovation and insurance penetration.
Nwachukwu, who is also the Managing Director and Chief Executive Officer of Rex Insurance Limited, spoke at an industry event themed, “From Capital to Capacity: Driving Growth, Innovation, and Trust in Nigerian Insurance Sector.”
She said the recapitalisation had created an opportunity for insurers to expand their capacity, but stressed that the long-term benefits would depend on how effectively the additional capital was deployed.
“We must resist the temptation to celebrate the recapitalisation as an end. The real test lies in translating stronger balance sheets into underwriting capacity, innovation, better claims service, and wider penetration,” she said.
According to Nwachukwu, insurers must maintain sound underwriting standards, prudent risk management, customer-focused service and sustainable growth to ensure the exercise strengthens the industry’s long-term prospects.
She cautioned against complacency, noting that decades of efforts to improve insurers’ capital positions must now translate into tangible benefits for customers.
Nwachukwu said the industry’s performance should be measured by its ability to insure larger business risks locally, ensure prompt and fair claims payments for families, and persuade more Nigerians that insurance is relevant to their daily lives.
“The value of recapitalisation will be judged by what it delivers to policyholders, not by what it says on a balance sheet,” she said.
The NIA chairman also warned that higher capitalisation must be supported by disciplined risk assessment and adequate pricing. Without these safeguards, she said, insurers could jeopardise their financial stability by pursuing growth without properly managing risks.
She called for greater adoption of technology, digital distribution channels and partnerships with insurance technology companies to extend coverage to underserved communities and customer groups.
Nigeria’s low insurance penetration, she noted, presents an opportunity for operators to develop products that address the needs of individuals and businesses that remain outside the insurance market.
Nwachukwu identified public confidence as a critical factor in the industry’s expansion, warning that claims delays and disputes over contractual obligations could undermine trust and discourage potential customers from purchasing policies.
“Trust is earned one claim at a time, and it is the surest route to deeper penetration. If we get this right, growth will follow,” she said.
She added that the NIA would continue supporting member companies through regulatory engagement, advocacy and capacity-building initiatives designed to strengthen claims settlement, professional standards and market conduct.
