NAICOM Boss Tasks Insurers On Governance, Innovation, Capacity

Insurance companies must stop measuring success solely by how much capital they have raised and instead focus on what that capital enables them to achieve, the Commissioner for Insurance/CEO of the National Insurance Commission (NAICOM), Mr. Ayo Omosehin, has said.

Omosehin made the call while delivering a keynote address at the BusinessDay Insurance Conference 2026, themed “From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria’s Insurance Sector,” describing the theme as timely given the industry’s recent completion of recapitalization.

The NAICOM boss, who was represented at the event by the Head, Lagos Control Office, Dr. Julius Odidi, said the true purpose of capital is to build capacity — the capacity to underwrite risks, pay claims promptly, innovate, inspire confidence and ultimately support national economic growth.

Capital without capacity, he stressed, is merely a number on a balance sheet, and only becomes meaningful when it translates into stronger governance, technological advancement, faster claims settlement and improved customer experiences.

The NAICOM boss explained that reforms carried out under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 were designed not simply to raise capital, but to build stronger institutions and improve the industry’s ability to serve Nigerians.

He urged stakeholders to shift the conversation from how much capital has been raised to what that capital is actually accomplishing in terms of underwriting strength, claims-paying ability, customer satisfaction and public confidence.

On growth, Omosehin noted that Nigeria’s expanding population, entrepreneurial culture, infrastructure investments, digital economy and growing middle class present major opportunities for the insurance sector, but said these can only be captured by institutions with sufficient capacity to underwrite large projects, retain more risk locally, and reach underserved communities.

He called on insurers, boards and management teams to invest in people, governance and innovation to build that capacity.

Speaking on innovation, the commissioner said it is no longer optional but “the currency of relevance,” noting that consumers increasingly compare their insurance experience with that of tech companies, digital banks and e-commerce platforms.

He said NAICOM remains committed to supporting digital transformation, InsurTech development and inclusive insurance products.

Omosehin also identified trust as the industry’s most valuable asset, stressing that claims settlement remains the clearest proof of insurance value.

“The true test of any insurance company is not how many policies it sells. The true test is how effectively it responds when policyholders need support,” he said, adding that NAICOM would continue to prioritise consumer protection and place policyholders at the centre of insurance operations.

He further highlighted the importance of human capital, saying the industry’s capacity would ultimately be determined by the quality of its professionals, particularly as insurers contend with increasingly complex risks such as cyber threats, climate change, AI and geopolitical uncertainty.

Describing the transformation from capital to capacity as a shared responsibility, Omosehin called for collaboration among regulators, insurers, brokers, the media and policyholders, saying the sector must move beyond meeting regulatory standards to exceeding public expectations and supporting Nigeria’s broader economic transformation.

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