BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission (NAICOM) on Thursday told directors of insurance companies that board membership is not an honorary appointment.
The Commissioner for Insurance/Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, disclosed this at the 2026 Insurance Directors’ Conference in Lagos, themed “Recapitalisation to Resilience: Leading the Risk-Based Capital Era.” The conference was organised by the College of Insurance and Financial Management (CIFM).
According to him, board members are expected to ask difficult questions and challenge management for the better.
He listed strategic leadership and oversight, capital stewardship, risk governance, management accountability, internal control and assurance, and board composition and effectiveness as some of the responsibilities he expects boards to own.
He said shareholder interests must not override prudential considerations or undermine board independence.
He also stressed Fit and Proper requirements, saying governance “begins with people” and that appointments should be driven by competence, character and capability, not status or relationships.
He noted that the end of recapitalisation marks the start of a more demanding phase, defined by how capital is governed, protected and deployed rather than by its size.
On the role of the regulator, he explained that the Minimum Capital Requirement sets the baseline, while Risk-Based Capital also considers the risks an institution assumes. “An insurer may meet the minimum and still hold insufficient capital for its risk exposures,” he said.
He said NAICOM will increasingly emphasise the quality of capital, risk management, governance effectiveness and the accuracy and timeliness of regulatory returns. He added that successful recapitalisation “does not confer permanent immunity from regulatory scrutiny.”
He also urged insurers to turn stronger balance sheets into economic relevance, including deeper insurance penetration, financial inclusion, long-term institutional investment and prompt, fair claims settlement.
