By Onu Okorie
Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, has said that insurance should no longer be viewed merely as a financial service or mechanism for indemnifying losses, but as a strategic instrument for economic stability, investment, entrepreneurship and national development.
Omosehin made the call in his keynote address at the 2026 Insurance Professionals’ Forum in Abeokuta, Ogun State, yesterday.
Speaking on the theme, ‘The economics of risk: Sustaining a resilient insurance industry,’ he called for a stronger, more resilient and technology-driven insurance industry capable of supporting Nigeria’s economic transformation and sustainable development.
According to him, insurance enables individuals, businesses and governments to undertake productive activities by pooling, diversifying and transferring risks.
He said the industry plays a critical role in mobilising long-term savings, facilitating investment, supporting financial stability, protecting households, promoting entrepreneurship and encouraging capital formation.
“Insurance is often described as the invisible infrastructure of economic development because its contribution, though frequently unnoticed, is indispensable,” Omosehin said.
The NAICOM boss stressed that key sectors of the economy could not develop sustainably without appropriate insurance protection.
He noted that agriculture requires crop insurance, infrastructure projects need construction and engineering covers, expanding trade depends on marine insurance, while energy projects require robust risk-transfer structures to attract investment.
Omosehin, however, warned that the risk environment was changing rapidly, driven by climate change, technological disruption, cyber vulnerabilities, demographic changes, geopolitical uncertainties, inflation, exchange-rate fluctuations and supply-chain disruptions.
He said floods, droughts, desertification, storms and environmental degradation were producing increasingly large and unpredictable losses, while cyber threats had emerged as strategic risks capable of disrupting businesses and critical infrastructure.
He therefore urged insurance companies to move beyond reliance on historical loss data and adopt predictive analytics, enterprise risk management, scenario modelling, climate intelligence and advanced technology in their decision-making.
NIIRA 2025 ushers in new regulatory era
Omosehin said the enactment and implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had placed the Nigerian insurance industry on a new development path characterised by stronger institutions, enhanced regulatory oversight and greater emphasis on policyholder protection.
He said NIIRA 2025 represented “not the conclusion of reform but the beginning of a new era” for the sector.
He outlined NAICOM’s regulatory priorities as protection of policyholders, financial soundness, stronger corporate governance, improved market conduct, innovation, insurance inclusion and preservation of market stability.
According to him, effective regulation must go beyond enforcing compliance to protecting financial stability, maintaining public confidence and ensuring that the risk-transfer mechanism continues to support economic activity.
Recapitalisation to strengthen industry
The Commissioner also highlighted the ongoing recapitalisation of the insurance industry, saying the exercise was designed not simply to raise financial thresholds but to strengthen institutional capacity and deepen market resilience.
He said stronger capital bases would enable insurers to retain larger risks, settle claims more efficiently, invest in technology and human capital, support innovation and participate in major national projects.
“The true measure of recapitalization therefore lies not in balance sheet expansion alone, but in the creation of stronger, more resilient institutions capable of delivering sustainable value to policyholders and the broader economy,” he said.
He stressed that insurers must remain solvent during economic stress, honour their obligations during crises and retain policyholders’ confidence.
Trust, claims settlement critical
Omosehin identified trust as the most valuable asset of the insurance industry, describing insurance fundamentally as a promise between policyholders and insurers.
He said transparency, accountability, ethical leadership, sound governance, fair market conduct and prompt settlement of legitimate claims were essential to rebuilding and sustaining public confidence.
He also pointed to the establishment of the Insurance Policyholders’ Protection Fund under NIIRA 2025, describing it as an additional safety net in cases of insurer distress.
Technology, skills and inclusion
The NAICOM chief urged insurers to embrace artificial intelligence, machine learning, predictive analytics, blockchain, geospatial intelligence and digital platforms, which he said were transforming underwriting, claims processing, fraud management, customer engagement and risk assessment.
He cautioned, however, that technological advancement must be accompanied by safeguards for data protection, ethical deployment and consumer confidence.
Omosehin equally called for greater investment in professional education and human capital, saying modern insurance practitioners must possess skills spanning actuarial science, economics, finance, data analytics, cybersecurity, climate-risk assessment, governance and enterprise risk management.
He tasked the Chartered Insurance Institute of Nigeria with continuing to strengthen professional competence, ethical standards and technical excellence in the industry.
On insurance penetration, the Commissioner said millions of Nigerians remained uninsured or underinsured, describing the protection gap as both a developmental challenge and a major opportunity.
He called for innovative products such as microinsurance, agricultural insurance, inclusive health protection and technology-enabled distribution platforms to reach underserved Nigerians.
Insurance products, he said, must become more affordable, accessible, understandable and responsive to the realities of Nigerian consumers.
Omosehin concluded by urging all stakeholders—including insurers, reinsurers, brokers, loss adjusters, technology providers, policymakers, professional bodies, educational institutions, development partners and consumers—to work together to build a resilient insurance ecosystem.
He said the ultimate goal should be to position insurance as a strategic catalyst for Nigeria’s economic transformation rather than merely a mechanism for indemnification.
“Insurance remains one of humanity’s greatest economic innovations because it transforms fear into confidence, uncertainty into opportunity, and risk into resilience,” he said.