The National Insurance Commission (NAICOM) has urged insurance operators to shift their focus from the amount of capital raised during the industry’s recapitalisation exercise to the value that capital can create through stronger underwriting, improved claims settlement, innovation, and enhanced customer service.

The call was made by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, at the 2026 BusinessDay Insurance Conference themed “From Capital to Capacity: Driving Growth, Innovation and Trust in Nigeria’s Insurance Sector.”

Omosehin, who was represented by Clifford Ndubem, Head of Finance, Lagos Control Office of NAICOM, said recapitalisation was never intended to be an end in itself.

He noted that the success of the exercise would ultimately be measured by how effectively insurers convert capital into stronger operational capacity, better governance, technological advancement, and improved customer experience.

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Insurers Must Demonstrate Impact of New Capital

According to Omosehin, the industry must now show tangible results from the additional capital raised, particularly in areas such as underwriting strength, claims-paying ability, customer satisfaction, and public confidence.

  • Insurers are expected to improve their capacity to underwrite larger and more complex risks.
  • The industry must strengthen its ability to settle claims promptly and efficiently.
  • Additional capital should support greater risk retention within Nigeria.
  • Operators are encouraged to develop products tailored to emerging and evolving risks.
  • “Financial strength, while necessary, is not an end in itself. The true purpose of capital is to create capacity; the capacity to underwrite risks, the capacity to pay claims, the capacity to innovate, the capacity to inspire confidence, and ultimately, the capacity to support economic growth,” Omosehin said.

He added that the industry’s ability to support major infrastructure projects and retain more risks domestically would be critical to unlocking future growth.

Technology and Innovation Now a Necessity

The NAICOM boss also challenged insurers to embrace technology as customer expectations continue to evolve.

  • Consumers increasingly demand convenience, speed, transparency, and personalised services.
  • Insurers should leverage data analytics to better understand customer behaviour and needs.
  • Responsible use of artificial intelligence can help improve operational efficiency and product delivery.
  • Technology should be deployed to simplify processes and make insurance products more affordable and accessible.

Omosehin stressed that innovation should no longer be viewed as a competitive advantage alone but as a business necessity for insurers seeking to remain relevant in a rapidly changing marketplace.

Claims Settlement Remains Key to Building Trust

NAICOM identified trust as one of the most important factors that will determine the success of the industry’s next phase of growth.

  • Every successfully settled claim strengthens confidence in insurance.
  • Delayed or disputed claims continue to undermine public trust.
  • Consumer protection remains a key regulatory priority for the Commission.
  • Policyholders must remain at the centre of insurance operations and service delivery.

According to Omosehin, the industry’s long-term objective should be to transform capital into capability, capability into innovation, and innovation into sustainable growth.

Industry Completes Recapitalisation Exercise

The remarks come after NAICOM concluded the insurance recapitalisation exercise on July 31, 2026, marking the end of the 12-month compliance period granted to operators following the enactment of the new insurance law signed by President Bola Ahmed Tinubu in July 2025.

  • A total of 50 insurance and reinsurance companies met the new capital requirements.
  • NAICOM described the exercise as a major milestone in the transformation of the insurance industry.
  • The initiative was designed to strengthen insurers’ financial capacity and improve their ability to absorb risks.
  • The programme also aimed to enhance claims-paying capability and position the industry to support economic growth.

The insurance recapitalisation exercise followed a similar programme in the banking sector, where 33 banks collectively raised about N4.66 trillion over a 24-month period. Attention is now turning to the pension industry, where operators are expected to meet revised capital requirements set by the National Pension Commission (PenCom) before the December 31, 2026 deadline.