NAICOM, OPSN to deepen insurance penetration via NIIRA 2025

Dr Alban Igwe and Olusegun Ayo Omosehin; Commissioner For Insurance, National Insurance Commission.

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Blessing Chuks Okonta

The Organized Private Sector of Nigeria (OPSN) has commenced high-level engagements with the National Insurance Commission (NAICOM) to streamline the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The move, which includes the deployment of specialized insurance products for the maritime and petroleum sectors, aims to bridge existing gaps in risk transfer and compensation.

Leading a delegation of OPSN representatives and officials from relevant federal ministries, Dr. Alban Igwe, Chairman of the OPS Insurance-Tech Committee, noted that the engagement is the result of extensive consultations with:

Freight forwarders and transport associations.

Petroleum retailers and underwriters.

The Ministry of Petroleum Resources.

The Ministry of Marine and Blue Economy.

Dr. Igwe emphasized that the initiative is a private sector-led effort mandated to coordinate stakeholders and propose viable implementation frameworks for insurance provisions under the new Act.

The OPSN identified two critical tracks for immediate operationalization:

Sector Focus Area Objective
Maritime Cargo & Container Losses Mitigate losses and ensure rapid compensation for stakeholders.
Petroleum Public/Commission Liability Provide cover for retail distribution and transit risks while considering thin retail margins.
Regulator’s Stance
Responding to the proposal, the Commissioner for Insurance (CFI) expressed the Commission’s readiness to collaborate but reminded stakeholders of the regulatory boundaries.

The Commissioner clarified that while private sector input is valued, NAICOM maintains the sole statutory mandate for:

Issuing operational frameworks and guidelines.

Determining premiums for compulsory insurance products under NIIRA 2025.

Ensuring consumer protection and product fairness.

“Proposals must be justified, assessed for fairness, and strictly align with the regulator’s remit to ensure the protection of the insuring public,” the Commissioner stated.

The meeting resolved to establish a Technical Working Group (TWG). This group will be tasked with reviewing the OPSN proposals and developing the modalities for a seamless rollout of the sector-specific products.