The National Insurance Commission (NAICOM) has urged operators in the insurance sector to embrace a more customer-centric approach in a bid to restore public confidence, enhance claims handling, and increase insurance penetration nationwide.
Insurance Week 2026 Opening Ceremony
Speaking at the opening of Insurance Week 2026 in Lagos on Tuesday, the Commissioner for Insurance, Olusegun Omosehin, emphasized that sustainable growth in the industry hinges on operators' ability to simplify processes, improve customer engagement, and create products that meet the needs of Nigerians.
Currently, the insurance sector contributes less than one percent to Nigeria's Gross Domestic Product (GDP). Industry stakeholders attribute this low penetration to limited awareness, poor understanding of insurance products, and lingering distrust arising from claims disputes.
Building Trust Through Transparency
Omosehin warned that without public trust and understanding, the industry would struggle to achieve sustainable growth. “Without awareness, there can be no demand. Without understanding, there can be no trust. And without trust, sustainable growth cannot be achieved,” he stated.
The NAICOM chief urged insurance companies to shift from product-driven operations to customer-focused service models that involve policyholders in product development and service delivery. He also stressed the need for simplified documentation and transparent claims processes, describing claims settlement as the “moment of truth” in insurance.
Role of the Nigerian Insurance Industry Reform Act 2025
Omosehin highlighted the significance of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, calling it a landmark legislation designed to strengthen regulatory oversight, improve corporate governance, and enhance policyholder protection. A key provision of the new law is the establishment of the Insurance Policyholders’ Protection Fund, which protects policyholders in the event of insurer distress or insolvency.
Industry analysts have repeatedly argued that prompt and transparent claims payment remains critical to restoring public confidence and deepening insurance penetration in Nigeria.
