Nigeria’s insurance industry is set for a major transformation as National Insurance Commission (NAICOM) partners with United Nations Development Programme (UNDP) to drive innovation, strengthen resilience, and expand insurance access nationwide.
The collaboration signals a bold step toward building a more inclusive, sustainable, and climate-resilient insurance ecosystem.
A Strategic Alliance for Growth
During a high-level meeting in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, welcomed a UNDP delegation led by David Mueller.
The visit focused on aligning priorities to:
- Expand insurance coverage across Nigeria
- Strengthen market stability
- Scale solutions for climate and disaster risks
Scaling Climate Risk Solutions
One of the standout areas of collaboration is the Lagos Flood Risk Insurance Model, a forward-thinking initiative aimed at protecting communities and businesses from flood-related losses.
UNDP reaffirmed its commitment to:
- Scaling climate risk insurance solutions
- Supporting actuarial capacity development
- Enabling insurers to mobilize capital for sustainable investments
This comes at a critical time as climate-related risks continue to rise across Nigeria.
Reforming Nigeria’s Insurance Landscape
NAICOM is currently driving sweeping reforms under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a new legal framework designed to modernize the sector.
According to Omosehin, the reform focuses on:
- Strengthening consumer protection
- Enhancing regulatory oversight
- Promoting innovation and sustainability
- Expanding insurance penetration
Recapitalisation: Building a Stronger Industry
A key pillar of the reform agenda is the ongoing insurance recapitalisation exercise, with its first phase set to conclude by July 31, 2026.
The initiative aims to:
- Improve financial strength of insurers
- Boost industry resilience
- Increase public confidence in insurance providers
To ensure a smooth transition, NAICOM has set up dedicated support systems, including a Recapitalisation Committee to guide operators.
Embracing ESG and Sustainable Insurance
NAICOM is also stepping up efforts to integrate Environmental, Social, and Governance (ESG) principles into the industry.
Working alongside global partners like UNDP and FSD Africa, the Commission is developing a comprehensive ESG framework to:
- Promote sustainable insurance practices
- Encourage responsible investments
- Align Nigeria with global standards
Investing in Talent and Capacity Building
Both NAICOM and UNDP emphasized the urgent need to grow actuarial expertise in Nigeria.
Through initiatives like the GAIN programme and partnerships with actuarial service providers, the goal is to:
- Build technical capacity
- Strengthen risk assessment capabilities
- Support long-term industry growth
Toward a National Catastrophe Insurance Scheme
Another major highlight of the discussion was the plan to revive a national catastrophe insurance scheme.
This initiative, expected to involve National Emergency Management Agency (NEMA), will help Nigeria better prepare for and respond to disasters through coordinated risk-sharing mechanisms.