The National Insurance Commission, NAICOM, has shifted its attention towards expanding insurance coverage following the recapitalisation of the industry.
The commission launched the Insurance Sector Strengthening Programme, ISSP, in Abuja as part of efforts to bring more Nigerians into the insurance market.
The programme is designed to improve insurance access for young people, women, micro, small and medium-sized enterprises, MSMEs, and other underserved groups.
It marks a new phase in the regulator’s strategy, moving beyond the strengthening of insurers’ balance sheets to improving the reach, relevance and accessibility of insurance products.
Stronger capital must translate into wider coverage
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, said the industry must ensure that the stronger capital base achieved through recapitalisation translates into better products, wider distribution and improved customer experience.
He said insurers could no longer rely mainly on physical offices located in major cities while consumer behaviour increasingly shifts towards digital platforms.
According to him, the industry must develop distribution and sales models capable of reaching Nigerians wherever they live and work.
Younger consumers, in particular, are increasingly using digital financial services and expect insurance products to be accessible through convenient online channels.
The regulator’s new focus is therefore expected to encourage insurers to adopt digital tools and develop products that reflect the needs of different customer groups.
Reaching underserved Nigerians
Insurance penetration in Nigeria remains limited compared with the size of the country’s population and economy.
Many Nigerians remain uninsured or underinsured because of low awareness, affordability concerns, limited access to insurance providers and a lack of products designed for their needs.
MSMEs also face significant risks but may lack the resources or knowledge required to obtain appropriate insurance cover.
The ISSP is intended to address some of these gaps by encouraging more inclusive insurance products and distribution models.
Products designed for low-income households, informal workers, small businesses, women entrepreneurs and young people could help expand the market.
Digital platforms may also reduce the cost of reaching customers by allowing insurers to sell policies, process claims and provide support remotely.
Customer experience becomes central
Omosehin said the industry must improve the customer experience if it is to build public trust and encourage more Nigerians to purchase insurance.
Customers often judge insurers by the ease of buying policies, the clarity of policy terms and the speed with which claims are processed.
Poor claims experiences can weaken confidence in the industry and discourage potential customers.
The regulator’s emphasis on better service delivery is therefore expected to place greater pressure on insurance companies to improve transparency, communication and claims management.
Insurers may also need to invest in technology, data analytics and customer education to provide products that are more responsive to market needs.
Recapitalisation creates new expectations
The recapitalisation exercise was intended to strengthen the financial capacity of insurance companies and improve their ability to underwrite larger risks.
However, stronger capital alone will not automatically lead to greater insurance penetration.
The industry must also develop products that customers can afford and understand.
NAICOM’s new programme suggests that the next phase of development will focus on converting financial strength into wider market participation.
A stronger insurance industry can support economic development by protecting households and businesses against unexpected losses, encouraging investment and improving financial resilience.
For MSMEs, insurance can help reduce the impact of fire, theft, accidents, business interruption and other risks that could threaten their survival.
For households, it can provide protection against health, life, property and other financial uncertainties.
The success of the ISSP will depend on the ability of insurers, regulators, technology companies and other stakeholders to work together to create a more accessible and trusted insurance market.
