NAICOM Reaffirms Commitment To Stronger, Digitally-Driven Insurance Sector

The National Insurance Commission (NAICOM) has renewed its commitment to building a resilient, innovative, and globally competitive insurance sector as implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 advances.

Speaking at an EY summit in Lagos on behalf of the Commissioner for Insurance, Mr. Usman Jankara highlighted the significant progress made since the Act came into force.

He described NIIRA 2025 as crucial to strengthening financial stability and enhancing policyholder protection.

Jankara confirmed that all insurers and reinsurers submitted their recapitalisation plans by the September 30 deadline. NAICOM, he said, has now made monthly progress reporting mandatory to ensure transparency in the implementation process.

To reinforce credibility, Jankara disclosed that NAICOM partnered with the Big 4 audit firms, including EY to independently verify minimum capital compliance.

He likened the verification process to an “airport scanner” that every operator must pass through to confirm eligibility.

He added that NAICOM has issued, and is developing, several new guidelines covering reinsurance operations, product development, registration processes, Takaful operations, microinsurance, and claims management.

These guidelines aim to modernise and standardise the industry.

According to him, many insurers have already indicated readiness for capital verification.

Several boards have approved mergers, acquisitions, fresh capital injections, and operational restructuring as part of recapitalisation strategies.

Despite the progress, Jankara acknowledged persistent challenges such as economic volatility, integration issues in M&A transactions, and sector-wide capacity gaps. He emphasised that these realities require collaborative effort across the industry.

Looking beyond compliance, Jankara outlined NAICOM’s broader strategic focus, which includes digital transformation, ESG adoption, and tapping into AfCFTA opportunities.

He also highlighted the need for advanced data analytics to address emerging risks such as climate change and cyber threats.

He noted that the implementation of IFRS 17 has made actuarial expertise more critical than ever, especially in liability valuation and pricing. NAICOM, he revealed, is concluding arrangements to engage an Actuary to support regulatory and industry capacity.

Jankara said NAICOM remains committed to building trust, strengthening governance, and driving innovation.

He described NIIRA 2025 as a collective pact aimed at reshaping the future of Nigeria’s insurance industry.

NAICOM Reaffirms Commitment To Stronger, Digitally-Driven Insurance Sector is first published on The Whistler Newspaper