NAICOM pushes trust-based regulation to deepen insurance growth
Nike Popoola
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, has said purposeful regulation will be key to rebuilding public confidence and unlocking sustainable growth in Nigeria’s insurance industry.
Speaking at a financial services leadership forum in Lagos on Thursday, Omosehin said the regulator’s strategy is centred on building trust while enabling innovation and strengthening market discipline across the sector.
According to him, Nigeria’s low insurance penetration and limited public confidence present both a challenge and an opportunity to reposition the industry as a driver of economic resilience and inclusive growth.
“NAICOM’s guiding principle is regulation that builds trust and unlocks growth,” he said. “Our role is not merely to supervise after the fact, but to shape an environment where good firms thrive, customers are treated fairly, and long-term capital forms around stable, insurable risks.”
Omosehin noted that the enactment of the Nigeria Insurance Reform Act 2025 provides a “once-in-a-generation opportunity” to modernise the sector’s regulatory framework, strengthen governance standards, and accelerate digital transformation.
He said NAICOM’s reform agenda will focus on five key priorities: financial soundness, governance and compliance, consumer fairness, market conduct, and innovation.
The commissioner explained that the regulator is advancing risk-based capital requirements and Own Risk and Solvency Assessment-driven supervision to ensure insurers maintain strong financial positions that match the complexity of their operations.
He added that the commission will also strengthen governance standards by enforcing fit-and-proper leadership requirements, robust risk management structures, and greater board accountability.
To improve consumer confidence, Omosehin said NAICOM plans to introduce stricter market conduct rules, including clearer product disclosures, disciplined pricing, and faster claims settlement processes.
“Penetration improves where trust is consistent. That means pricing that reflects risk and is explained clearly, claims that are paid fully and on time, complaints that are resolved, and data that are secure,” he said.
He disclosed that NAICOM would publish comparable service metrics across the industry, including claims settlement turnaround times, complaint resolution rates, and claims ratios, to enable consumers make informed decisions.
Omosehin also highlighted plans to expand innovation through regulatory sandboxes and fast-track approvals for emerging insurance models such as microinsurance, parametric products, and embedded insurance.
He added that regulatory processes would be digitised to improve efficiency, including licensing, product filings, and regulatory returns.
To support sector growth, NAICOM is strengthening collaboration with other financial regulators and industry stakeholders across banking, pensions, capital markets, fintech, and telecommunications.
This coordination, he said, will help integrate insurance products into broader financial services ecosystems through premium financing, digital distribution, and bundled protection offerings.
Omosehin urged insurance operators to invest in governance, transparent pricing, and efficient claims settlement in order to build lasting customer trust.
“Our long-term vision is a stronger, more competitive, and more developmental insurance market that protects Nigerians through life’s shocks, mobilises long-term savings into productive investment, and supports the country’s ambition to be Africa’s most dynamic financial hub,” he added.
