BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission (NAICOM) has challenged Nigerian insurance operators to radically overhaul their business models by transitioning from product-centric marketing to a customer-centric approach.
The regulator warned that the long-standing industry habit of “selling what has been produced, rather than producing what can be sold” must change if the sector hopes to bridge the persistent public trust gap.
The call was made by the Commissioner for Insurance, Mr. Segun Omosehin, who was represented by the Deputy Commissioner for Insurance (Finance and Administration), Mr. Ekerete Ola Gam-Ikon, during the flag-off of the 2026 Insurance Week.
Omosehin emphasized that public awareness and trust are no longer peripheral regulatory duties but core strategic priorities necessary to unlock sustainable economic growth.
Addressing industry executives, Omosehin noted that despite the critical role insurance plays in risk management, public understanding remains low. He urged operators to move away from generic messaging and embrace localized, highly relatable communication.
“It is not enough for people to simply know that insurance exists,” Omosehin stated. “They must understand how it works, why it matters, and how it can protect their lives, assets, and aspirations. We must communicate in languages people understand and through platforms they trust.”
The Commissioner pointed directly to claims settlement as the ultimate litmus test for the industry’s credibility, describing it as the “moment of truth.”
“Delays, ambiguities, or perceived unfairness in claims settlement do not just erode trust in one company—they weaken confidence in the entire system,” he warned, urging operators to simplify documentation and create transparent timelines for policyholders.
Highlighting recent legislative achievements, the NAICOM chief described the passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as a defining milestone that establishes a robust safety net for consumers.
Key structural transformations introduced under NIIRA 2025 include:
Policyholders’ Protection Fund to safeguard consumers even in cases of insurer insolvency.
• Stronger Capital Requirements: Re-architecting the financial resilience and supervisory frameworks of operating firms.
• Strategic Economic Alignment: Mandating deliberate insurance support for critical national sectors, including infrastructure development, agriculture, and Micro, Small, and Medium Enterprises (MSMEs).
However, Omosehin cautioned that legislation alone cannot guarantee success. “The true impact of NIIRA 2025 will depend on how effectively we implement its provisions. Compliance should be seen not as a burdensome obligation, but as an opportunity to elevate standards.”
Driving Inclusive Insurtech Innovation
Turning to technology, the Commissioner acknowledged that digital platforms, data analytics, and Insurtech innovations offer unprecedented opportunities to streamline onboarding, quicken claims management, and bridge geographical gaps.
He nonetheless urged operators to deploy tech responsibly, ensuring that cybersecurity and data privacy remain paramount. He stressed that innovation must be inclusive, intentionally drawing in rural communities and informal sector participants rather than isolating them.
Concluding his address, Omosehin declared that the Nigerian insurance sector stands at a historic crossroads, requiring practitioners to break the silence that has historically hindered industry penetration.
“Trust is not built overnight; it is earned through consistent actions, dependable service, and unwavering integrity,” Omosehin said.
“Let us seize the opportunities presented by ongoing reforms, sustain the momentum, and work together to create an insurance sector that is inclusive, innovative, and globally competitive.”
