The Nigerian Insurers Association (NIA) has challenged insurance companies to move beyond the successful recapitalisation of the industry and translate their newly strengthened financial base into bigger underwriting capacity, faster claims settlement, innovation and greater public trust.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, issued the challenge at the BusinessDay Insurance Conference 2026 in Lagos, declaring that the industry’s new capital strength must now produce measurable benefits for policyholders and the wider Nigerian economy.
The conference, held at the Oriental Hotel, Victoria Island, had the theme: “From Capital to Capacity: Driving Growth, Innovation, and Trust in Nigeria’s Insurance Sector.”
Nwachukwu disclosed that the recapitalisation exercise had lifted the industry’s capital base to more than ₦1.079 trillion, with 50 insurance and reinsurance companies successfully meeting the new minimum capital requirements.
She described the development as a major milestone but warned operators against treating recapitalisation as the end of the reform process.
“The capital is in place. The legal framework is in place. The question before every boardroom now is what do we do with it?” she asked.
According to her, the real test of the recapitalisation would be whether stronger balance sheets translate into the ability to underwrite larger and more complex risks within Nigeria, improve claims settlement and customer service, and extend insurance coverage to millions of underserved Nigerians.
“Capital is not the destination. It is the foundation. The real question before us is whether the public will see the difference,” she said.
₦1.079trn Capital Raises Expectations
Nwachukwu said the stronger capital base had created an opportunity for insurers to play a bigger role in Nigeria’s economic development by supporting infrastructure, capital markets and long-term investments.
She added that the recapitalisation had also attracted greater domestic and foreign investor interest, driven by improved corporate governance, a clearer regulatory environment and the growth potential of the Nigerian insurance market.
The NIA chairman, however, stressed that increased capital would only become meaningful if it translated into stronger underwriting capacity and better services for customers.
NIIRA 2025 Opens New Chapter
Nwachukwu described the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as the most consequential legislative intervention in the sector in more than two decades.
She said the legislation went beyond recapitalisation by providing a modern regulatory framework designed to strengthen consumer protection and establish a foundation for sustainable growth.
She commended the National Insurance Commission (NAICOM) for its role in implementing the new capital requirements, including guidelines on eligible capital instruments, admissible assets and verification procedures.
According to her, the recapitalisation exercise demonstrated that effective regulation could combine firm standards with transparency and collaboration between regulators and operators.
Insurtech, Digital Platforms To Drive Expansion
Nwachukwu also challenged insurers to deploy their stronger financial positions to accelerate digital transformation and develop products capable of reaching Nigerians currently outside the insurance net.
She identified Insurtech, digital insurance, technology-driven distribution channels and innovative products as critical tools for improving insurance penetration.
With Nigeria’s large population and expanding economy, she said, the sector had significant room for growth, particularly among underserved individuals and businesses.
Technology, she added, could make insurance products more accessible, affordable and relevant while enabling insurers to reach customers beyond traditional distribution channels.
‘Trust Is Earned One Claim At A Time’
The NIA chairman identified public trust as another major test facing the industry.
She said prompt claims settlement, transparency, effective communication and improved customer experience would determine whether Nigerians increasingly embrace insurance.
“Trust is earned one claim at a time, and it is the surest route to deeper penetration,” Nwachukwu said.
She warned that while improved claims settlement could strengthen public confidence, delays and disputes had the potential to undermine efforts to expand the insurance market.
NIA Targets New Growth Areas
Nwachukwu said the NIA would continue to support operators through advocacy, regulatory engagement and capacity-building programmes as the industry adjusts to the new requirements under NIIRA 2025.
She identified energy insurance, climate-related risks, agricultural insurance, reinsurance, risk management and corporate governance as areas requiring stronger technical capacity.
She also called for increased collaboration among NAICOM, insurers, reinsurers, brokers, investors, technology companies and the media to unlock the sector’s potential.
The NIA chairman said the post-recapitalisation era must therefore be defined not merely by how much capital insurers hold, but by how effectively that capital is deployed to expand risk coverage, strengthen claims settlement, drive innovation, deepen financial inclusion and restore confidence in insurance.
The message from the industry’s leadership was clear: the ₦1.079 trillion capital base is no longer the story—the results it delivers for Nigerians are.
