By Onu Okorie
The Commissioner for Insurance and Chief Executive of the National Insurance Commission NAICOM, Olusegun Ayo Omosehin has note that low insurance penetration leaves households and enterprises dangerously exposed to shocks such as fire, theft, illness, accidents, and business interruptions, all of which can wipe out years of accumulated wealth overnight in most developing economy like Nigeria.
Omosehin made the declaration at the 2026 CEOs’ Retreat of the Nigerian Council of Registered Insurance Brokers (NCRIB) and the official unveiling of the NCRIB Insurance Awareness and Penetration Initiative in Umuahia, Abia State — an event that signals a bold new chapter in Nigeria’s push to close one of Africa’s widest insurance gaps.
Speaking at the event, the NAICOM chief drove home a message that resonates far beyond boardrooms: insurance is not a luxury — it is a lifeline.
“Insurance is far more than a financial product. It is protection. It is confidence. It is peace of mind,” Omosehin declared, adding that it “provides a structured mechanism through which individuals, families, businesses, and governments can recover from unforeseen events and financial disruptions.”
For a developing economy like Nigeria — where millions of small businesses, artisans, farmers, and traders operate without any financial safety net — this message carries enormous weight.
Omosehin did not mince words about the broader economic stakes: “The economic engine of any nation is powered by the resilience provided by insurance and the insurance sector.” When businesses are adequately protected, he argued, they survive crises, sustain employment, and attract investment — creating a multiplier effect that strengthens the wider economy.
Nigeria’s Inclusive Insurance Push: What the Federal Government Is Doing
At the heart of the Umuahia event was a clear articulation of NAICOM’s strategy to transform insurance from an elite financial product into an everyday tool for ordinary Nigerians
NAICOM’s stated vision is to foster “a stronger, more inclusive, and more responsive insurance sector — one that is trusted by the public and aligned with national economic objectives.” Central to this is a deliberate campaign to simplify insurance language and take awareness drives to grassroots communities, including markets, transport unions, religious centres, educational institutions, and professional bodies.
The Commission is also pushing for insurance communication in local languages and culturally relatable formats — an acknowledgment that low penetration is as much a problem of communication as it is of affordability.
A significant policy lever is the “One Insurance Industry” initiative, under which NAICOM is rallying all industry stakeholders — brokers, underwriters, agents, and government — around a single, unified mission of expanding coverage. The Abia State launch, involving NCRIB and multiple sector players, is a practical demonstration of this collaborative framework in action.
Enforcement of Mandatory Covers
The Commission is also tightening its focus on compulsory insurance products as entry points for broader inclusion. These include motor third-party insurance — arguably the most accessible product for ordinary citizens — as well as cover for public infrastructure, markets, petrol and gas stations, hospitals, tankers, and power stations.
By enforcing these mandatory covers, NAICOM hopes to build a culture of insurance compliance that gradually normalises broader voluntary uptake.