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…As stakeholders vow close marking of insurers
By Henry Uche
With Nigeria’s insurance industry entering a new phase of tighter regulation, stronger capital base and greater accountability, the Nigerian Insurers Association (NIA) has assured policyholders and other stakeholders of a more disciplined sector, declaring that underwriters are now better positioned to guard their interests and deliver on their promises.
Speaking at a recent event with the theme, ‘From Capital to Capacity: Driving Growth, Innovation, and Trust in Nigerian Insurance Sector,’ Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, stated strongly that the era of weak accountability and broken promises must end.
Nwachukwu, who is the Managing Director and Chief Executive of Rex Insurance Limited, explained that having garnered N1.079 trillion from the recapitalization exercise, the question before every boardroom now is ‘what do we do with it?’
She maintained that the next phase in the journey to higher ground demands disciplined execution by its members.
Her words: “We must resist the temptation to celebrate the recapitalization as an end. The real test lies ahead—in translating stronger balance sheets into underwriting capacity, innovation, better claims service, and wider penetration. The industry’s leadership must remain focused on the fundamentals: sound underwriting, prudent risk management, customer-centric service, and sustainable growth. Complacency now would be a betrayal of the opportunity that NIIRA has created.”
Nwachukwu recalled that the industry over the decades has focused on ‘strengthening its capital base’ but today, that exercise has reached an important milestone- disciplined implementation.
“Capital is not the destination. It is the foundation. The real question before us is whether the public will see the difference. Will a business owner find it easier to insure a larger risk locally? Will a family trust that a claim will be paid promptly and fairly? Will a young Nigerian in Kano, Aba, or Ibadan see insurance as relevant to their life? The value of recapitalization will be judged by what it delivers to policyholders, not by what it says on a balance sheet.
“Capacity must be matched by discipline. More capital gives us room to write bigger risks and grow faster. It must go hand in hand with sound underwriting, prudent risk management, and adequate pricing. Growth that ignores discipline only postpones the problem. Growth built on both will be sustainable.
“Innovation and distribution must widen the market. Our penetration remains far below what our economy and population require. Technology, Insurtech partnerships, digital channels, and products designed for underserved segments give us practical ways to reach Nigerians we have not yet served. The opportunity is large, and our stronger capital positions give us the means to pursue it.
“Trust is the currency of our industry. Every improvement in claims delivery, transparency, and customer experience strengthens public confidence, and every delay or dispute weakens it. Trust is earned one claim at a time, and it is the surest route to deeper penetration. If we get this right, growth will follow.”
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She called on insurers, reinsurers, brokers, regulators, investors, and the media to work together with a shared sense of purpose to achieve the end goal.
“As we turn the page on recapitalization, the Nigerian Insurers Association will step forward with a clear mandate to support our members through the operational adjustments that implementation demands. Our commitment is to sustain advocacy, regulatory guidance, and capacity-building initiatives that help operators translate stronger capital into better service, faster claims settlement, and deeper penetration.
“We will also hold the industry to higher standards. The NIA will promote professionalism and market conduct, working with NAICOM to ensure that recapitalization delivers tangible benefits to policyholders; and all stakeholders.
“As the Commissioner for Insurance has charged, the industry’s biggest deficit is not capital; it is trust. The NIA accepts this challenge. We will champion claims excellence, encourage disclosure of claims payments, and work to make prompt settlement a defining culture across the market”
She assured that NIA will build capacity where it matters most, strengthen expertise in specialized areas including Energy Insurance, Climate-related Insurance, agricultural insurance, reinsurance, risk management, and governance.
“We will continue to invest in innovation, digital distribution, and products designed for underserved Nigerians. We will implement practical activities to ensure we turn capital into capacity. The NIA stands ready to work with every stakeholder in this room to make this happen.”
Meanwhile, some policyholders in a telephone interview who spoke anonymously have vowed to hold to account insurance companies that fail to honour contractual obligations.
According to them, they are out to use their social media handles to henceforth call out any underwriting firm that acts in a way to frustrate policyholders.
“We have received their promises as usual, but we are out for them. We are watching to see a demonstration of the discipline they have vowed to offer,” one policyholder said.
Another Nigerian who has no insurance policy with any underwriter, Mr. Vitalis Daniel, spoke in solidarity with policyholders over their plights in the past several years. He said: “Though I do not have any insurance policy at all. I used to hear about insurance companies and how they behave to their customers. I sympathize with them when they complain. Now we have read about the recapitalization exercise both in the banking and insurance sectors, and all the promotions they have made to Nigerians, especially their customers. This time around, we don’t want to hear or see any act of deception or duplicity as it were. We shall not take it lightly with them. However, I believe customers shall keep to the terms and conditions of every contract,” he said.
