Insurance firms must adhere to prudential standards — NAICOM
Insurance Firms Urged to Uphold Prudential Standards
By Emma Ujah, Abuja Bureau Chief
ABUJA — The Commissioner for Insurance, Olusegun Omosehin, emphasized the importance of adherence to prudential standards and ethical practices among insurance companies following the completion of the industry’s recapitalization exercise.
Omosehin delivered this message during the launch of the Insurance Sector Strengthening Programme (ISSP) on Thursday in Abuja. He indicated that while the recapitalization was crucial for the growth and stability of the insurance sector, its benefits could only be realized if industry participants maintained high standards of professionalism and accountability.
As the regulatory body, the National Insurance Commission (NAICOM) is committed to fostering an environment conducive to innovation while ensuring compliance with regulatory requirements and the protection of policyholders.
“Innovation will be encouraged, but not at the expense of consumer protection,” Omosehin stated. “Market expansion will be supported, but it must not compromise solvency, transparency, or public trust.”
The ISSP aims to create a collaborative platform for regulators, insurers, intermediaries, technology providers, development partners, and consumers. Omosehin expressed that the future of Nigeria’s insurance market depends on responsible underwriting, robust capitalization, and sound corporate governance, along with timely claims settlements and clear value for policyholders.
“NAICOM will continue to engage, support, and guide the industry, with the expectation that every operator will earn public confidence through compliance, professionalism, and quality service,” he stated.
The commissioner reiterated that NAICOM’s mandate is to protect policyholders, ensure market stability, and promote the orderly development of the insurance sector. He cautioned that sustainable growth cannot be achieved solely through regulation; discipline, transparency, and accountability are equally essential.
Omosehin highlighted the need for collaboration, innovation, consumer trust, and professional competence to improve insurance penetration throughout society. He noted that technological advancements are reshaping the financial services landscape, leading consumers to seek greater convenience, transparency, and tailored solutions.
“To remain competitive, the insurance industry must adopt innovative practices,” he said. “The integration of digital platforms, insurtech solutions, and data-driven methodologies within the ISSP framework will enhance competitiveness in an increasingly digital economy.”
He described the ISSP as a pivotal initiative to transform Nigeria’s insurance landscape, aiming to make the sector a more inclusive, innovative, resilient, and trustworthy contributor to national development.
Omosehin urged industry stakeholders to commit to the stability and sustainable development of the insurance sector, pointing out that the ISSP addresses key industry priorities across six critical pillars: Advocacy and Policy; Awareness and Education; Capacity Building; Gender Inclusion; Youth Engagement; and MSME and Value Chain Development.
