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Insurers committee: Pressure mounts on insurers as NAICOM drives reforms
Nigeria’s insurance industry is facing mounting pressure to reform its operations, deepen trust and unlock new revenue streams as the National Insurance Commission (NAICOM) rolls out sweeping measures targeting claims settlement, capital strength and market expansion.
At a recent meeting of the Nigerian Insurers Committee, the regulator made it clear that the era of slow claims, weak capitalisation and limited market reach must give way to a more responsive and growth-oriented industry.
Central to NAICOM’s directive is the need for insurers to sustain prompt claims payment, a long-standing concern that has continued to undermine public confidence in the sector.
Chairman of the Communications and Stakeholders Engagement Sub-Committee, Ebelechukwu Nwachukwu, while briefing journalists after the meeting said the Commissioner for Insurance, Olusegun Omosehin, acknowledged improvements recorded in large claims settlements but warned that consistency across all claims remains critical.
Mrs. Nwachukwu stressed that claims payment is the strongest indicator of credibility in the industry and must be treated as a non-negotiable obligation.
She said: “Beyond trust, the regulator is opening up new business frontiers, particularly through a strategic partnership with the Bureau of Public Procurement (BPP), which will introduce compulsory insurance bonds for government contracts.
“Under the arrangement, contractors seeking public sector jobs will be required to obtain insurance-backed guarantees such as bid bonds and advance payment bonds, effectively positioning insurers at the centre of public procurement financing”, she added.
She further stated that operators were also directed to upgrade their internal systems to ensure seamless bond issuance and efficient claims processing, particularly in cases where guarantees are triggered.
“In addition, the Commission is pushing insurers into underdeveloped segments, especially the protection side of health insurance. While Health Maintenance Organisations dominate healthcare delivery, NAICOM believes insurers can play a stronger role in risk protection and long-term coverage solutions.
“The protection component of health insurance remains largely untapped and presents a significant opportunity for market expansion. To support this, the regulator has issued draft guidelines on the Policyholders’ Protection Fund for International Private Medical Insurance (IPMI), signalling a move towards stronger consumer safeguards in the health insurance space”, she noted.
However, while new opportunities are emerging, NAICOM expressed concern over the slow pace of recapitalisation across the industry. About 20 firms have initiated capital verification discussions with the Commission, but only 16 have reached active review stages.
Omosehin warned that operators must accelerate their efforts as timelines tighten, stressing that delays could undermine the broader reform agenda.
The regulator also reminded insurers of the April 30, 2026 deadline for full compliance with Know-Your-Customer (KYC) requirements, urging firms to strengthen customer data processes and documentation.
Meanwhile, broader reforms under the Nigerian Insurance Reform Agenda (NIRA) are gaining traction, with industry groups focusing on compulsory insurance enforcement, digital transformation and financial inclusion.
Looking beyond domestic reforms, the industry is also preparing to tap opportunities under the African Continental Free Trade Area (AfCFTA), which is opening new cross-border insurance markets.
Nwachukwu disclosed that Nigerian insurers have already received partnership interests from countries including Kenya, Mauritius, South Africa and the United Arab Emirates, as the sector positions for regional expansion.
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