Nigeria’s insurance regulator is preparing to introduce a new layer of transparency in the industry by making public key service performance indicators, including how quickly insurers settle claims, in a move aimed at rebuilding public trust and encouraging wider adoption of insurance products.
National Insurance Commission (NAICOM) said it plans to publish comparable service metrics across the sector such as claims settlement turnaround times, complaint resolution rates and claims ratios to enable consumers make more informed decisions when choosing insurance providers.
The initiative was disclosed by Olusegun Ayo Omosehin, commissioner for insurance and chief executive officer of NAICOM, during a financial services leadership forum in Lagos, where he outlined the regulator’s broader strategy to strengthen consumer confidence and reposition the insurance industry for sustainable growth.
Omosehin explained that persistent concerns about delayed claims payments and poor service delivery have continued to weaken public confidence in insurance, contributing to Nigeria’s low penetration rate despite the country’s large population and expanding economy.
According to him, improving transparency around insurers’ performance is essential to restoring credibility and encouraging more Nigerians to view insurance as a reliable financial safety net.
He noted that penetration levels tend to improve in markets where policyholders trust that claims will be honoured promptly and fairly.
“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,”Omosehin said.
By publishing industry service benchmarks, the regulator expects to create a more competitive environment where insurers are encouraged to improve operational efficiency and customer service in order to maintain reputational standing in the market.
The move is also expected to give policyholders clearer insight into how insurers perform beyond marketing promises, particularly in areas that directly affect customer experience.
The transparency drive forms part of a wider reform programme that NAICOM is pursuing following the enactment of the Nigeria Insurance Reform Act 2025, which the commissioner described as a significant opportunity to modernise the country’s insurance regulatory framework.
Omosehin said the new legislation provides a foundation for strengthening governance, improving financial resilience among insurers and encouraging innovation in the sector.
Within the reform agenda, NAICOM is prioritising five core areas including financial soundness, governance and compliance, consumer fairness, market conduct and innovation.
He explained that regulators are advancing risk-based capital requirements and Own Risk and Solvency Assessment driven supervision to ensure insurers maintain capital levels that are aligned with the scale and complexity of their operations.
The commission is also strengthening governance expectations within insurance companies by enforcing fit and proper leadership standards, stronger board accountability and more robust risk management structures.
These measures, according to Omosehin, are designed to build a healthier and more resilient insurance market that can protect policyholders while supporting broader economic stability.
Beyond governance reforms, NAICOM is seeking to improve the way insurance products are priced and communicated to consumers.
The regulator plans to introduce clearer product disclosures and stricter market conduct rules aimed at ensuring that customers fully understand the terms, risks and benefits of insurance policies before purchasing them.
Omosehin stressed that transparent pricing and responsible product design will be critical to rebuilding confidence among Nigerians who remain sceptical about insurance due to past experiences with claims disputes and policy misunderstandings.
Another element of the reform strategy involves expanding innovation within the industry, particularly through the use of regulatory sandboxes and faster approval processes for emerging insurance models.
The commission is encouraging insurers to explore new solutions such as microinsurance products designed for low income households, parametric insurance that triggers automatic payouts based on pre-defined events, and embedded insurance that is integrated into other financial or digital services.
These innovations, the commissioner said, will help broaden insurance access and ensure that protection products reach underserved segments of the population.
NAICOM is also working to digitise its own regulatory processes to improve efficiency and transparency within the supervisory system.
This includes the automation of licensing procedures, product filings and regulatory reporting requirements in order to reduce administrative delays and enhance oversight.
Omosehin noted that the insurance sector cannot achieve meaningful growth in isolation and will require deeper collaboration across the financial ecosystem.
As part of this effort, NAICOM is strengthening coordination with regulators and institutions in banking, pensions, capital markets, fintech and telecommunications.
Such partnerships, he said, will enable the development of integrated financial services solutions such as premium financing arrangements, digital distribution platforms and bundled protection offerings that combine insurance with other financial products.
Industry operators were also urged to take greater responsibility in restoring confidence by improving governance standards, ensuring transparent pricing structures and prioritising prompt claims settlement.
According to Omosehin, insurers must recognise that public trust is built not only through regulatory oversight but through consistent service delivery and ethical business practices.
“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 said.
In March 2025, Business a.m reported that the commission published a comprehensive report detailing unresolved claims across Nigeria’s insurance industry, a move widely regarded as unprecedented in the sector’s history. The publication underscored the commission’s determination to hold operators accountable and demonstrate that claims settlement would remain a central regulatory priority.
The report documented grievances submitted by 1,571 policyholders, exposing persistent cases of unpaid claims and disputes between insurers and their clients.
Analysts believe that the decision to publish insurers’ service performance metrics could mark a significant shift in how the market operates, as increased transparency may place pressure on underperforming firms while rewarding companies that demonstrate stronger claims management and customer service records.
If successfully implemented, the initiative could help narrow the trust gap that has historically limited insurance adoption in Nigeria and encourage more individuals and businesses to consider insurance as an essential component of financial planning and risk management.
