The National Insurance Commission (NAICOM) has launched the Insurance Sector Strengthening Programme (ISSP), a comprehensive initiative aimed at deepening insurance penetration, strengthening consumer confidence and positioning the Nigerian insurance industry as a more inclusive, innovative and resilient contributor to national development.
The Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, unveiled the programme on Thursday in Abuja, saying the initiative was designed to address persistent challenges limiting the growth and development of the insurance sector.
Omosehin said despite Nigeria’s large and growing economy, insurance penetration remained significantly below its potential, with many Nigerians still uninsured or underinsured.
He identified limited public understanding of insurance, trust deficit, capacity gaps and fragmented distribution channels as some of the major constraints to the expansion of the industry.
According to him, the challenges confronting the sector should not be seen merely as obstacles but as opportunities for innovative solutions, stronger coordination and deeper stakeholder engagement.
The ISSP, he said, would focus on six critical pillars: Advocacy and Policy; Awareness and Education; Capacity Building; Gender Inclusion; Youth Engagement; and MSME and Value Chain Development.
The Commissioner said greater public awareness and education were critical to increasing insurance uptake, stressing that no insurance market could thrive where consumers did not understand insurance as a practical tool for financial protection and risk management.
He said the programme would deploy targeted campaigns, stakeholder education and innovative communication strategies to improve insurance awareness and financial literacy among Nigerians.
Omosehin also emphasised the importance of strengthening human capital in the industry, noting that technological advancement and changing customer expectations required insurance professionals to continuously upgrade their skills.
He said proposed training and professional development initiatives under the ISSP would enhance technical expertise, professionalism and service delivery across the insurance value chain.
The Commissioner said the programme would also prioritise women and young people, describing them as critical to expanding the reach and relevance of the insurance industry.
“Women are a significant economic force, while young people represent the future of our nation and our industry,” he said, adding that tailored products, innovative engagement and career development opportunities would help bring both groups into the mainstream of insurance.
On Micro, Small and Medium Enterprises (MSMEs), Omosehin said expanding insurance coverage to the segment would improve business resilience, economic stability and long-term enterprise growth.
He noted that although MSMEs remained major drivers of employment, innovation and productivity, many businesses still operated without adequate risk protection.
The Commissioner said the ISSP was also aligned with the objectives of the Nigeria Insurance Industry Reform Agenda (NIIRA 2025), particularly in the areas of deepening insurance penetration, enhancing professionalism, promoting innovation, strengthening consumer protection and increasing the sector’s contribution to economic growth.
He, however, warned insurance operators against compromising prudential standards, ethical conduct and consumer protection in the pursuit of market expansion.
“Market expansion will be supported, but not at the expense of solvency, transparency, or public trust,” Omosehin said.
He stressed that the next phase of insurance growth must be anchored on responsible underwriting, adequate capitalization, robust corporate governance, transparent operations, prompt settlement of genuine claims and measurable value to policyholders.
According to him, NAICOM would continue to support innovation while insisting on compliance, professionalism and service excellence from operators.
The Commissioner further urged the industry to embrace digital transformation, noting that technology was redefining the way financial services were designed, distributed and consumed.
He said the integration of digital platforms, insurtech solutions and data-driven approaches under the ISSP would enhance the competitiveness of Nigeria’s insurance market in the digital economy.
Omosehin said the ultimate objective of the programme was to rebuild and strengthen public trust in insurance.
“Trust is the foundation of every successful insurance market. It is earned through transparency, timely claims settlement, ethical conduct, strong regulation, and consistent delivery of value,” he said.
He called for stronger collaboration among regulators, insurers, intermediaries, technology providers, development partners, professional bodies, educational institutions, consumers and the media to achieve the objectives of the programme.
The Commissioner said the ISSP had the potential to transform insurance from an underutilised financial service into a major instrument for economic resilience, social protection, wealth creation and national development.
He assured stakeholders of NAICOM’s continued support for initiatives that promote policyholder protection, market stability and sustainable growth of the insurance industry.
