Challenges Must Be Addressed To Revitalize Nigeria’s Insurance Industry

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The Commissioner for Insurance, Mr. Olusegun Omosehin, has highlighted the need to address several challenges facing the Nigerian insurance industry, including low penetration rates and a lack of public trust, in order to position it effectively to manage risks associated with Nigeria's ambition to achieve a one-trillion-dollar economy.

The Commissioner for Insurance, Mr. Olusegun Omosehin, has said that challenges such as low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, as well as digital transformation and adaptation must be addressed to revitalize the insurance industry and position it to risk-manage Nigeria’s one-trillion-dollar economy aspiration.

Omosehin noted that the Commission plays a vital role in fostering innovative business solutions that address pressing economic and social issues in Nigeria’s insurance sector. He said: “This commitment extends to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry. In achieving this objective of revitalising the insurance industry, we must of necessity address the following fundamental issues plaguing the sector, which include among others; low insurance penetration, lack of public trust, market fragmentation, regulatory reforms, as well as digital transformation and adaptation.” According to him revitalizing the Nigerian insurance industry to risk-manage Nigeria’s One Trillion Dollar Economy literally speaks to the insurance industry’s readiness and preparedness to de-risk the activities that is projected to galvanize productivity, innovations, economic growth and development. Omosehin stated: “It is crucial that we proactively incorporate innovative Insurtech solutions that will change our conventional business models, thereby safeguarding our continued relevance in addressing customer needs and market position. The Commission had since understood this reality and issued the Regulatory Sandbox Guideline to accommodate the testing and refinement of innovative products. Consequently, we established a Directorate for Innovation and Regulation, recognizing that change requires new approaches. “The Commission has also completed a draft Insurtech Operation Guidelines which shall be released very soon

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