The National Insurance Commission (NAICOM) has shifted its focus from the capital raised by insurers under the recently concluded recapitalisation exercise to how the strengthened balance sheets are translating into better underwriting capacity, claims payment and customer experience.
Olusegun Ayo Omosehin, commissioner for insurance and chief executive officer of NAICOM, said the industry must now move beyond discussions about the amount of capital raised and examine what the additional capital is achieving for insurers, policyholders and the wider economy.
Omosehin, who was represented by Clifford Ndubem, head of finance, Lagos Control Office of NAICOM, at the 2026 BusinessDay Insurance Conference, said the recapitalisation was never designed merely to increase insurers’ capital bases but to create institutions with greater capacity to serve Nigeria’s growing economy.
According to him, the success of the reform should ultimately be measured by whether stronger balance sheets translate into improved underwriting capacity, claims-paying ability, customer satisfaction, public confidence, technological advancement and product innovation.
“Capital as a means, not an end,” Omosehin said, stressing that capital would only become meaningful when it produces measurable improvements in the industry’s operations and services.
The regulator said the industry must therefore move from asking how much capital companies have raised to examining whether the funds are strengthening their ability to absorb losses, underwrite larger and more complex risks and meet their obligations to policyholders.
The shift comes as the insurance industry moves into the next phase following the completion of the 12-month compliance period granted to operators under the new insurance law enacted in 2025.
Omosehin said adequate capital remains fundamental to an industry whose business model is built around promises to provide financial support when individuals and businesses suffer losses.
However, he noted that financial strength alone would not address the industry’s long-standing challenges, arguing that stronger institutions must also develop the operational and human capacity required to convert capital into sustainable growth.
He identified Nigeria’s infrastructure expansion, digital economy, agricultural development, growing population and emerging middle class as areas that could create demand for insurance, provided insurers have the capacity to take on the associated risks.
According to him, capacity should include the ability to underwrite major infrastructure projects, retain more risks within the domestic market, develop products for emerging risks and extend insurance protection to underserved communities.
He also urged insurers to invest in governance, human capital, innovation and public education, noting that regulatory reform alone could not deliver the growth expected from the sector.
Beyond financial capacity, Omosehin said insurers would have to respond to changing consumer expectations, particularly as customers increasingly compare their experience with insurers to that offered by banks, telecommunications companies, technology firms and e-commerce platforms.
He identified convenience, speed, transparency, personalisation and simplicity as growing expectations among consumers, saying insurers would need to deploy technology to simplify processes and improve service delivery.
The commissioner specifically pointed to data analytics and responsible use of artificial intelligence as tools that could help insurers understand customer needs, improve operations and develop more accessible products.
He said NAICOM would continue to support digital transformation, insurtech development, inclusive insurance and product innovation as part of efforts to improve the industry’s relevance.
Omosehin also placed claims settlement at the centre of the industry’s efforts to rebuild public confidence, describing claims payment as one of the clearest demonstrations of the value of insurance.
He said every settled claim could strengthen confidence in insurance, while delays and unresolved complaints could weaken trust among policyholders.
For NAICOM, he said, the industry’s progress would ultimately depend on its ability to place policyholders at the centre of its operations and consistently deliver on its promises.
The commissioner further linked the development of the insurance industry to Nigeria’s broader economic ambitions, saying a stronger sector would be better positioned to support businesses, facilitate investment, improve financial inclusion and provide protection against emerging risks.
He said achieving this would require cooperation across the insurance ecosystem, with regulators providing oversight, insurers improving innovation and operational efficiency, brokers strengthening advisory services and other stakeholders contributing to public education and market development.
The post-recapitalisation phase, therefore, is expected to test whether the industry’s stronger capital base can translate into greater risk-taking capacity, improved customer outcomes and increased confidence in insurance, rather than remaining primarily a balance-sheet improvement.
