The National Insurance Commission (NAICOM) has raised expectations for insurance companies following the completion of the sector’s recapitalisation exercise, saying operators must now demonstrate how the additional capital is improving their capacity and services.
Olusegun Ayo Omosehin, Commissioner for Insurance and Chief Executive Officer of NAICOM, said recapitalisation should not be viewed as an end in itself but as a means of strengthening underwriting, claims payment, innovation and customer service.
Omosehin, who was represented by Clifford Ndubem, Head of Finance at NAICOM’s Lagos Control Office, spoke at an insurance industry conference in Lagos.
He said insurers must now show what the additional capital is achieving, particularly in underwriting capacity, claims-paying ability, customer satisfaction and public confidence.
The commissioner said stronger capital positions should enable insurers to underwrite major infrastructure projects, retain more risks within Nigeria and develop products that address emerging risks.
He also urged operators to embrace technology and innovation as consumers increasingly demand faster, simpler and more convenient insurance services.
According to him, insurers should use technology, data analytics and responsible artificial intelligence to understand customer needs, simplify processes and develop affordable and accessible products.
Omosehin described innovation as an obligation rather than merely a competitive advantage for insurers operating in an increasingly digital economy.
He also identified trust and claims settlement as major priorities for the sector’s next phase.
“Every settled claim strengthens confidence, while delayed claims weaken it,” he said.
He said the regulator would continue to prioritise consumer protection and initiatives that place policyholders at the centre of insurance operations.
The recapitalisation exercise was designed to strengthen the financial capacity of insurance companies and enable them to take on larger and more complex risks. NAICOM announced in August that the exercise had been successfully completed, with operators required to meet new minimum capital requirements under the Nigerian Insurance Industry Reform Act 2025. (NAICOM)
The regulator has said the stronger capital base should improve insurers’ ability to honour policyholder obligations, support long-term investments and participate more effectively in major sectors of the Nigerian economy. (NAICOM)
For insurers, the post-recapitalisation period will therefore shift attention from simply meeting capital requirements to demonstrating measurable improvements in the quality, accessibility and reliability of insurance services.
The industry is expected to use the stronger financial base to expand coverage, improve claims settlement, introduce relevant products and increase public confidence in insurance.
The success of the exercise will ultimately depend on whether the additional capital translates into greater capacity and better experiences for policyholders.
