By Abua Hunde
For years, Nigeria’s insurance industry has occupied an uncomfortable position in the national economy. Its importance has never been in doubt, yet its enormous potential has remained largely untapped because of weak public confidence, low penetration, concerns over claims settlement and the limited financial capacity of some operators. But since his appointment as Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM) in 2024, Olusegun Ayo Omosehin has brought a renewed sense of purpose to the regulation and repositioning of the sector.
Omosehin did not come to NAICOM as a stranger to the insurance business. With more than three decades of experience, he has worked across different segments of the industry and occupied senior leadership positions at Crusader Insurance, Custodian & Allied, Admiral Insurance, AIICO General Insurance, Mutual Benefits Assurance and Old Mutual Nigeria Life Assurance.
He also served as Chairman of the Nigerian Insurers Association. His extensive experience gives him a practical understanding of the industry’s strengths and weaknesses and, perhaps more importantly, an appreciation of what must change if insurance is to play a bigger role in Nigeria’s economic development.
One of the clearest indications of this new direction is the successful completion of the industry’s recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The exercise, which was designed to strengthen the financial capacity and resilience of operators, has fundamentally changed the conversation around the strength of insurance companies in Nigeria.
Under Omosehin’s watch, the process resulted in stronger capital positions across compliant operators, creating a more solid foundation for companies expected to protect individuals, businesses and investments against risk. It was a difficult regulatory undertaking, but one that was necessary for the industrya to compete effectively in a modern economy.
Yet recapitalisation is only useful if stronger balance sheets translate into better services. This appears to be central to the philosophy behind the current reforms. NAICOM has continued to emphasize corporate governance, financial soundness, accountability and better claims settlement, recognising that the ultimate measure of an insurance company is not merely how much money it has, but how effectively it meets its obligations to policyholders. The establishment of the Insurance Policyholders’ Protection Fund is particularly significant because it strengthens the institutional safety net for policyholders and reinforces the principle that the customer must remain at the centre of insurance regulation.
Another important aspect of Omosehin’s stewardship is the movement towards risk-based regulation. NAICOM’s work on a Risk-Based Capital framework is designed to ensure that capital requirements correspond more closely with the risks individual insurance companies actually undertake. This is a more sophisticated approach to supervision and reflects the reality that operators do not all face identical risks. Properly implemented, it should encourage stronger risk management, discourage reckless practices and create a regulatory environment in which responsible operators can grow while the interests of policyholders remain protected.
The reforms are also extending beyond the traditional boundaries of the industry. NAICOM under Omosehin has increasingly focused on innovation, technology, financial inclusion and the expansion of insurance penetration. Its collaboration with the National Space Research and Development Agency on the use of geospatial data and catastrophic risk insurance is an example of how the sector can begin to respond to risks associated with public infrastructure, climate-related events and other emerging challenges. This broader outlook is important because Nigeria cannot maximise the economic value of insurance if large sections of the population and significant areas of economic activity remain outside its reach.
Omosehin’s professional and academic background further strengthens the capacity he has bought to the regulatory office. He holds degrees in Political Science, International Law and Diplomacy, and Economics, and is a Fellow of the Chartered Insurance Institute of Nigeria, the Institute of Directors and the Institute of Loss Adjusters of Nigeria.
More important than the credentials, however, is the experience behind them. His career has taken him from technical and executive roles within the industry to the highest regulatory position, giving him an unusual perspective of both the operator and regulator sides of the insurance business.
The changes at NAICOM have also attracted public support, with the Good Governance Assembly recently commending Omosehin for the direction of the reforms and urging stakeholders to support measures aimed at strengthening the industry. At the same time, disagreements and allegations surrounding regulatory decisions have emerged, as would ordinarily happen in a sector undergoing major structural change. But the recent retraction and apology by the Coalition for Good Governance in Nigeria over earlier claims concerning Omosehin also underline the importance of responsible public commentary and the need to distinguish verified facts from allegations.
Ultimately, however, the success of these reforms will not be measured by the number of regulatory policies introduced or the amount of capital raised. Nigerians will want to see faster and fairer claims settlement, better products, improved customer service, greater transparency and insurance that is accessible to ordinary households and small businesses. The industry must earn public confidence by demonstrating, consistently, that when a policyholder suffers a legitimate loss, the promise made by the insurer will be honoured.
That is why the story of Omosehin’s tenure at NAICOM is worth watching. He inherited an industry with enormous potential but longstanding structural and confidence challenges, and he has chosen to confront some of those challenges through stronger capital requirements, policyholder protection, improved regulation, risk-based supervision and wider market development.
Overall, the insurance industry is beginning to wake up, and Omosehin has played a significant role in that awakening. The greater responsibility now lies with NAICOM and the operators themselves to ensure that the reforms are sustained and translated into tangible benefits for policyholders, businesses and the Nigerian economy.
Hunde, a public affairs analyst, writes from Gboko, Benue State.
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