NAICOM Urges Insurers to Convert Recapitalisation into Stronger Capacity

By Adedapo Adesanya

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

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

Mr Omosehin, who was represented by Mr Clifford Ndubem, Head of Finance, Lagos Control Office of NAICOM, said the recapitalisation exercise was not intended to be an end in itself, but a means of strengthening the capacity of insurance operators.

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

According to him, insurers must now demonstrate tangible outcomes from the capital raised, particularly by improving their ability to underwrite larger and more complex risks, settle claims promptly and retain more risks within the country.

“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,” Mr Omosehin said.

He added that the ability of the insurance industry to support major infrastructure projects and retain more risks domestically would be critical to unlocking further growth.

The NAICOM chief also called on insurers to embrace technology and innovation as customer expectations continue to evolve, noting that consumers increasingly demand convenience, speed, transparency and personalised services.

He urged operators to leverage data analytics to better understand customer needs and responsibly deploy artificial intelligence to improve operational efficiency and product delivery.

Mr Omosehin said technology should be used to simplify insurance processes and make products more affordable and accessible, stressing that innovation had moved beyond being a competitive advantage to becoming a business necessity.

He also identified claims settlement as a critical factor in rebuilding public confidence in the insurance industry, noting that every successfully settled claim strengthens trust, while delayed or disputed claims could undermine confidence.

He said consumer protection would remain a key regulatory priority for NAICOM, urging insurers to place policyholders at the centre of their operations and service delivery.

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