NAICOM Commissioner tasks insurance directors on governance, risk management after recapitalisation
The Commissioner for Insurance Mr. Olusegun Ayo Omosehin with Dr. Greg Ezeilo (SA to Minister on Public Finance) the representative of the Honourable Minister of Finance and Coordinating Minister of the Economy Mr. Taiwo Oyedele
Nike Popoola
The Commissioner for Insurance, Olusegun Ayo Omosehin, has urged insurance company directors to translate the gains of the recently concluded recapitalisation exercise into stronger corporate governance, effective risk management and improved capacity to meet policyholders’ obligations.
He said recapitalisation was not the destination but the beginning of a more demanding phase in which insurance companies must demonstrate how effectively their capital is governed, protected and deployed.
Omosehin stated this on Thursday in Lagos at the 8th Annual Insurance Directors’ Conference, organised by the College of Insurance and Financial Management in collaboration with the National Insurance Commission (NAICOM).
The conference was themed, “Recapitalisation to Resilience: Leading the Risk-Based Capital (RBC) Era.”
He commended shareholders, boards and management teams for their commitment and sacrifices towards the successful completion of the recapitalisation exercise, noting that it had provided a stronger foundation for the industry.
However, he cautioned that a well-capitalised institution was not necessarily a resilient one, explaining that poor governance, weak internal controls, ineffective risk management and inappropriate investments could undermine even financially strong institutions.
According to him, true resilience involves the ability of institutions to anticipate risks, absorb shocks, adapt to changing circumstances and continue delivering value to stakeholders.
The Commissioner identified strategic leadership, capital stewardship, effective risk governance, management accountability, internal control and board effectiveness as critical responsibilities directors must strengthen in the post-recapitalisation era.
He urged boards to adopt more active oversight by interrogating management assumptions, challenging strategies where necessary and ensuring that business decisions were supported by adequate information and sound judgement.
On the transition to Risk-Based Capital, Omosehin explained that while the Minimum Capital Requirement establishes the minimum capital threshold for insurance companies to undertake their licensed businesses, RBC considers the risks assumed by institutions and the capital required to support them.
He noted that companies could meet minimum capital requirements but still have insufficient capital relative to the nature and complexity of their risk exposures.
He disclosed that NAICOM’s supervisory approach would increasingly emphasise capital quality, risk management frameworks, governance effectiveness, institutional resilience and companies’ capacity to meet policyholders’ obligations.
Omosehin also warned that successful recapitalisation did not guarantee permanent immunity from regulatory scrutiny, stressing that capital adequacy remained a continuous responsibility.
He urged insurance companies to translate their strengthened capital positions into greater economic contributions through improved underwriting capacity, increased domestic risk retention, innovative products and expanded insurance penetration.
He further emphasised the importance of prompt and fair claims settlement, describing policyholder protection as central to building public confidence in the industry.
The Commissioner also urged boards to uphold Fit and Proper requirements, ensuring that directors and senior management possess the necessary qualifications, experience, competence, reputation and ethical standing to discharge their responsibilities.
He challenged insurance directors to ensure that the post-recapitalisation era would be remembered not merely for increased capital but for stronger institutions, improved governance and greater relevance to Nigeria’s economic development.
