NAICOM tasks NIA with restoring faith in the insurance sector

Commissioner for Insurance, National Insurance Commission, NAICOM, Mr. Olusegun Ayo Omosehin, has tasked the Nigerian Insurers Association, NIA, with spearheading efforts to restore public faith in the insurance sector as it embarks on a new transformation phase.

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This charge was given at the Investiture Ceremony of Mrs. Ebelechukwu Nwachukwu, who has been inaugurated as the 27th Chairman of the NIA in Lagos on a Tuesday, marking a historic milestone as the first woman to helm the Association.

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The Commissioner described Nwachukwu's emergence as timely and historic, coinciding with a pivotal phase in the industry's development, particularly following the enactment of the Nigerian Insurance Industry Reform Act, NIIRA 2025, and the impending conclusion of the recapitalisation exercise on 31st July 2026.

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Omosehin noted that the groundwork has been laid, with NIIRA 2025 providing the necessary legal framework and the recapitalisation exercise set to yield stronger, better-capitalised institutions, emphasizing that effective leadership is now essential to drive progress.

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He outlined three key areas of focus for the NIA under the new leadership: fostering a culture of claims excellence, ensuring compliance with compulsory insurance classes, and driving innovation through digital channels and specialized insurance products.

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Specifically, the NIA has been tasked with promoting claims excellence, publishing claims ratios, and competing on service, as well as enforcing compliance with six classes of compulsory insurance in collaboration with state governments and law enforcement agencies.

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Additionally, the Association is expected to drive innovation by scaling digital channels, microinsurance, Takaful, and parametric covers to increase penetration beyond 1%.

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Omosehin reaffirmed NAICOM's commitment to upholding risk-based supervision, robust governance, and consumer protection under the provisions of NIIRA 2025.

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The Commissioner urged the new Chairman to unite the market, elevate industry standards, and expand the insurance market to reach over 100 million Nigerians who have never purchased a policy.

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According to Omosehin, the Nigerian insurance industry is at a critical juncture, with evolving laws, a changing capital base, and a pressing need to transform the way it serves the Nigerian people.