Recapitalisation: NIA DG underscores roles of RACC in insurance capital protection, utilisation

*Says capital alone is not a guarantee of success

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Chuks Udo Okonta

The Nigerian Insurers Association (NIA) has said the roles of the Risk, Audit and Compliance Committee (RACC) are very important as it is through their vigilance that the promises made by the industry are fulfilled, whilst through their diligence the sector’s capital is protected and well utilised.

The Director-General of NIA Mrs. Bola Odukale, said this today at the ongoing annual retreat of NIA Risk, Audit, Compliance Committee in Abeokuta, Ogun State, stating that as professionals in audit, risk and compliance, they are the sentinels of organisational discipline and trust.

She urged them to use the retreat not only as a forum for discussion, but as a platform for action, imploring them to critically evaluate their systems, challenge complacency and create a roadmap that leads to better outcomes for their institutions, customers, and the country.

She submitted that the theme of the retreat “Insurance Industry Recapitalisation: Strengthening Governance Activities for Maximum Benefits” is both timely and critical, stressing that it underscores the dual priority facing the sector today: the need to build capital resilience while embedding strong governance structures that deliver long-term value.

Mrs. Odukale said the Nigerian insurance industry stands at a pivotal juncture, noting that from increased regulatory reforms to growing public awareness and evolving customer expectations, the industry is witnessing a transformation that challenges it to rethink how it operates and how it delivers value.

“At the heart of this transformation is recapitalisation, an essential step toward achieving financial solidity, institutional resilience, and global competitiveness.

“However, let us be clear: capital alone is not a guarantee of success.

“The strength of our governance structures will ultimately determine how well we deploy capital, manage risks, and meet our obligations to policyholders and stakeholders alike,” she posited.

According to her, recapitalisation must go together with robust governance, strong boards, efficient internal controls, transparent audit systems and effective compliance processes are all indispensable components of a resilient institution.

“As we deepen the recapitalisation process, the critical questions we must ask ourselves include: Are we equipped with robust risk management frameworks to safeguard investments?

“Are our compliance mechanisms adequately structured to ensure ethical and regulatory alignment?

“Are our audit practices proactive and transparent enough to inspire trust?

“The answers to these questions lie not only in policies and procedures but in the values, we uphold and the discipline we enforce across our industry,” she noted.

She submitted that at the Nigerian Insurers Association, their role extends beyond advocacy; they serve as facilitators of progress, enablers of industry best practices and partners in building a trusted financial ecosystem.

She stated that over the years, the NIA has achieved notable milestones that reflect its shared vision for a modern and accountable industry.

“One of our flagship achievements is the Nigerian Insurance Industry Database (NIID).

“This platform has drastically curtailed the circulation of fake insurance certificates by enabling real-time verification of motor insurance policies.

“It has become an indispensable tool for regulators, insurers, and enforcement agencies alike.In furtherance of our digital transformation agenda and to deepen insurance penetration, the Nigerian Insurance Industry Portal (NIIP) was launched to enhance integration, standardisation, and accessibility across insurance service providers.

“This portal is fast becoming the central hub for industry data and operations, helping to streamline reporting and compliance.

“We have also built robust collaborations with key government agencies, including the Federal Road Safety Corps (FRSC), the Nigeria Police Force, and NITDA, to promote enforcement of compulsory insurance, ensure secure data sharing, and reinforce public confidence in insurance products,” she posited.

She submitted that through continuous engagement with the National Insurance Commission (NAICOM), the Federal Ministry of Finance and other critical stakeholders, the NIA advocates for practical and progressive regulations that support industry growth while ensuring public trust.

These achievements are not just milestones; they are proof that our industry is capable of innovation, collaboration, and sustained excellence.Looking ahead, we remain committed to:1. Facilitating regulatory dialogue to ensure that recapitalisation timelines and modalities remain realistic and inclusive, she said.

Continuing she added that the NIA is also promoting capacity-building initiatives in risk, audit, and compliance functions across member companies.

Encouraging widespread adoption of digital tools for governance, transparency, and performance monitoring.

Strengthening ethical leadership through enhanced corporate governance guidelines and performance metrics.