• Why insurance industry needs reforms, by NAICOM
The Nigerian Council of Registered Insurance Brokers (NCRIB) has said over 70 per cent of Nigerians remain without any form of insurance cover, a development it said showed the country’s low insurance penetration.
The Council pegged the current level of insurance penetration in the country at approximately four per cent, a figure it described as “fast increasing but still grossly inadequate.”
Speaking at a media parley and investiture ceremony yesterday in Abuja, the newly inaugurated 13th Area Committee Chairman of the Abuja Area Committee of NCRIB, Ojo Richard said Nigerians must begin to see insurance not as a burden, but as a critical financial planning tool.
Meanwhile, the National Insurance Commission (NAICOM) has explained that its ongoing reforms are driven by the urgent need to protect consumers, boost innovation, ensure stronger financial foundations for insurers, and make insurance more accessible to millions of Nigerians currently outside the safety net.
Speaking during the Insurance Week 2025 celebration, Mr. Olusegun Ayo Omosehin, Commissioner for Insurance and Chief Executive Officer of NAICOM, said the reforms are focused on four main objectives: strengthening consumer protection, promoting digital innovation, ensuring capital adequacy and sound governance, and expanding insurance access to underserved communities.
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“The future of Nigeria depends on how well we manage risk. Every decision—whether by individuals, businesses, or government—carries uncertainty. Insurance provides the tools to navigate these uncertainties and protect our collective future,” Omosehin said.
At the event, stakeholders called for a national shift in perception towards insurance.
Richard said: “Majority of the middle class and low-income earners in Nigeria place insurance last on their priority list. That narrative must change.
Insurance should come first.
“To address the low insurance penetration in the country, Richard outlined NCRIB’s renewed advocacy drive targeting individuals and businesses.”
He said the Council was ramping up grassroots engagement and would be embarking on a nationwide campaign from June 30 to July 4 across major cities including Lagos, Ibadan, and Port Harcourt.
“Campaign targets markets, religious institutions, schools,” he added.
According to Richard, the campaign would involve roadshows, engagements at markets, religious centers, and schools.
He said NCRIB was also using both traditional and digital media to spread awareness.
Richard added that the council aimed to reach underinsured populations, especially those in the informal sector.
He said: “We are even creating endowment funds to encourage young people to study insurance and join the industry. Insurance clubs are being established in secondary schools. We’re thinking long-term.”
Also speaking, President of NCRIB, Babatunde Oguntade, urged Nigerians to embrace insurance as a safeguard against life’s uncertainties.
He highlighted the council’s new direction towards “customer-centricity” — an approach focused on tailoring insurance policies to the specific needs of individuals.
“No two customers are the same. The role of brokers is to feel the pulse of each client and develop policies that truly meet their needs,” Oguntade noted.
He stressed the importance of insurers profiling clients’ risks accurately and ensuring that when losses occur, payouts are prompt and fair — an approach he said will rebuild trust in the sector.
He called on insurance companies and underwriters to create inclusive products for vulnerable groups, such as the visually and hearing impaired, people with mobility challenges, and those in low-income brackets.
Oguntade revealed that many brokers currently offered verbal interpretations of policies for the visually impaired but said more accessible formats must be developed.
According to the Commissioner, the drive for reform is rooted in the belief that a well-regulated, inclusive, and innovative insurance industry is critical to national development. He said NAICOM aims to create an industry that can better serve citizens across social and economic classes, provide reliable support in times of need, and help businesses and households manage everyday risks.
While the Commission is leading the reforms, Omosehin stressed that lasting impact requires shared responsibility across the sector.
“We cannot do it alone. We need every stakeholder—insurers, brokers, agents, and professionals—to uphold the highest standards of ethics, service, and professionalism,” he said.
He also outlined practical steps insurance operators must take to support the reform goals. These include educating the public on the benefits of insurance, designing products that address the needs of people in both formal and informal sectors, ensuring claims are processed promptly and transparently, and investing in talent and technology to build public trust.
Speaking on the Insurance Week celebrations, Omosehin described it as a call to deepen awareness about the value of insurance across Nigeria. “From Lagos to Abuja, Port Harcourt to Kano, we are seeing growing interest and participation in insurance awareness campaigns. This momentum must continue,” he noted.
He urged all operators to renew their commitment to building an insurance industry that meets the real needs of Nigerians and supports the country’s broader economic and social goals. “Insurance is not a luxury; it is a necessity,” Omosehin concluded.
By driving these reforms, NAICOM said it aims to reposition the industry to better protect Nigerians, promote innovation, and help the country manage risk more effectively in an increasingly uncertain world.