NAICOM unveils keys to unlock insurance sector’s potential

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has unveiled four key imperatives that must be pursued with vigour and focus so as to unlock the insurance industry’s potential and reposition it as a major contributor to national growth and development.

The Director Inspectorate National Insurance Commission Ajibola Bankole, made the revelation at the 2025 Independent Shareholders’ Association of Nigeria (ISAN) Triennial Delegates Conference in Lagos.

He identified the key imperatives as: Innovation and Financial Inclusion, stating that the insurance sector must continually innovate to meet the needs of an increasingly diverse population.

He submitted that by leveraging digital technology, microinsurance, and takaful, insurers can reach underserved segments; from rural farmers and artisans to small business operators and integrate them into the formal financial system.

*Public Awareness and Trust Building

He noted that one of the sector’s most persistent challenges remains the issue of public perception and trust.

According to him, many Nigerians still view insurance with scepticism due to inadequate awareness or delayed claims experiences.

He said building public confidence requires consistent education, transparency in operations, and prompt settlement of genuine claims.

These are non-negotiable for restoring credibility and deepening participation, he posited.

*Regulatory Reform and Investor Confidence

Bankole noted that at NAICOM, they remained resolutely committed to establishing a regulatory environment that promotes sustainable growth, protects policyholders, and inspires investor confidence, stressing that an this regard, the Nigerian Insurance Industry Reform Act (NIIRA) 2025 represents a landmark achievement in modernising the legal and institutional framework of the industry.

“The NIIRA 2025 introduces far-reaching provisions aimed at strengthening corporate governance, enhancing capital adequacy, promoting market discipline, and improving consumer protection.

“It empowers NAICOM to adopt a more risk-based and proportionate supervisory approach, ensuring that regulation is both facilitative and forward-looking.

“These reforms, anchored in NIIRA 2025, are designed not merely to enforce compliance, but to create a more transparent, competitive, and investment-friendly insurance market, one capable of supporting the government’s broader economic transformation agenda,” he said.

Strategic Partnerships and Collaboration

He maintained that the path to sustainable growth is one of collaboration. Insurers, shareholders, investors, and policymakers must work in concert to unlock opportunities in critical sectors such as infrastructure, health, agriculture, and climate risk management.

Through such partnerships, insurance can move from being viewed merely as a safety mechanism to becoming a true catalyst for national development, he said.

He submitted that Independent Shareholders Association of Nigeria occupies a unique and strategic position within our corporate ecosystem. “Your advocacy for transparency, ethical governance, and responsible investing aligns perfectly with NAICOM’s vision for a stable and competitive insurance industry.

“By holding corporate entities to high standards of governance and accountability, ISAN plays a vital role in shaping a financial environment that rewards integrity, efficiency, and sustainable value creation.

“Such oversight not only strengthens shareholder confidence but also reinforces the foundations of our financial system as a whole,” he posited.

He said the task of building a resilient Nigerian economy goes far beyond improving GDP figures, stating that it is about creating systems that protect value, preserve wealth, and sustain confidence, even in times of volatility.

He said insurance remains a cornerstone of the national architecture, adding that it is not merely a post-loss remedy and it is a proactive instrument for economic stability, investment facilitation, and societal resilience.

“With the coming into force of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, our sector now stands on firmer legal and institutional footing to drive inclusive growth, enhance accountability, and align with global best practices.

“At the National Insurance Commission, we are committed to ensuring that this new legal framework translates into measurable progress, in market performance, investor confidence, and policyholder protection. But this vision can only be realised through the collective commitment of all stakeholders, regulators, operators, investors, and shareholders alike.

“Together, let us continue to build a sector — and indeed, a nation — that is strong, transparent, and well-prepared for the challenges and opportunities of the future,” he said.