Stakeholders Ask: Can New Insurance Act Finally Break Nigeria’s 1% Coverage Barrier?

The National Insurance Commission (NAICOM) is celebrating the new Nigerian Insurance Industry Reform Act (NIIRA 2025), calling it a “game-changer” that could finally transform the insurance sector and boost Nigeria’s economy.

But many stakeholders, industry experts, and everyday Nigerians are not celebrating just yet. While they agree the Act is a step in the right direction, they are waiting to see real results—especially since decades of efforts to grow insurance coverage beyond 1% of the population have failed.

For most industry players—brokers, agents, analysts, and observers—NIIRA 2025 is not a magic fix. Insurance in Nigeria has long suffered from public mistrust and has been seen as irrelevant by many citizens. Still, NAICOM’s new leadership believes this law could be the turning point.

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A New Vision for Insurance

NAICOM’s Commissioner for Insurance, Mr. Olusegun Omosehin, sees NIIRA 2025 as a golden opportunity to rebuild the industry and make insurance a major contributor to national growth.

Since taking office in May 2024, Omosehin has been working hard to raise awareness about insurance and promote its importance. He has engaged individuals, businesses, government ministries, and agencies in efforts to get everyone on board with the new vision. His mandate from President Bola Tinubu is clear: help grow the Nigerian economy to $1 trillion by 2030—with insurance playing a key role.

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Building Stakeholder Support

Even before NIIRA was officially signed into law on July 31, 2025, NAICOM had already begun engaging key players. Government agencies like the Federal Fire Service, Nigeria Police, FRSC, Civil Aviation Authority, and Electricity Management Services Agency were urged to support enforcement and awareness of insurance.

Other institutions like the Corporate Affairs Commission, SEC, Head of Civil Service, and the Nigerian Economic Summit Group (NESG) were also brought into discussions to explore how insurance can boost economic growth.

On the global stage, NAICOM has welcomed delegations from the World Bank, Malaysia, Ghana, and Gambia, exchanging ideas and adopting best practices to strengthen the Nigerian insurance sector.

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A New Law with Real Reforms

At the 2025 Insurance Professionals Forum, Omosehin described NIIRA 2025 as a major achievement. The new law replaces multiple outdated insurance laws with a single, clearer legal framework. This makes it easier for insurance companies to comply and encourages more investment.

The law introduces Risk-Based Capital (RBC) standards, meaning insurance companies will now be assessed based on the actual risks they take, rather than a one-size-fits-all capital requirement.

Other key features include:

• Policyholder Protection Fund to safeguard customers.
• Stronger enforcement of compulsory insurance (e.g. motor, building).
• Support for digital transformation and InsurTech innovations.
• Greater focus on microinsurance and financial inclusion for underserved communities.
• New focus on Environmental, Social, and Governance (ESG) principles.

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Early Signs of Progress

Omosehin believes this is more than just a regulatory change—he sees it as a total transformation of the industry. He says NIIRA will:

• Attract more investors,
• Promote innovation,
• Improve public trust, and
• Position insurance as a key part of Nigeria’s economic growth story.

He urged stakeholders to focus on building trust, improving professional capacity, and offering customer-friendly products—especially through digital channels, data analytics, AI, and blockchain.

He also emphasized that millions of Nigerians are still outside the formal insurance system, and reaching them will require simplified products, mobile platforms, and strong partnerships.

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Call to Action

Omosehin, a former Chairman of the Nigerian Insurers Association (NIA), called on all professionals in the insurance industry to fully embrace the reforms. He stressed that real success depends on:

• Proper implementation of the law,
• Full compliance by insurers,
• Ongoing training and capacity building, and
• Ethical leadership.

He also encouraged professionals to use data, explore new business models, and form strategic alliances to grow the industry.

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Public Opinion: We Want Action, Not Promises

A quick street survey across several Nigerian cities showed that more people are becoming aware of the benefits of insurance—especially third-party motor insurance and property cover. But most say the industry needs to “walk the talk.”

They pointed to former NAICOM Commissioner Olorundare Sunday Thomas, who ended his tenure in 2023 with a record N1.003 trillion in annual premium income. He also pushed for automation, a better operating environment, and quicker claims handling.

Now, the public wants the new Commissioner to go even further and break the 1% insurance coverage barrier once and for all.

“It’s time to change the story,” one respondent said. “The sector has been ignored for too long. Let this new Act bring real results.”

Source : The Sun