The National Insurance Commission (NAICOM) has revealed that insurance is much more than a financial service “it is a strategic instrument for economic stability.”
Speaking at the Insurance Professionals Forum 2026 held in Abeokuta, Ogun State, the Commissioner for Insurance, Olusegun Omosehin, said insurance is the institutional mechanism through which societies transform uncertainty into trust and convert vulnerability into resilience.
“The Nigerian insurance industry is at a historic turning point. Through recent regulatory reforms, particularly the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the sector has entered a new phase of development marked by higher expectations, stronger institutions, enhanced regulatory oversight and a renewed commitment to policyholder protection.
“In essence, risk represents uncertainty regarding future outcomes. Economics teaches us that uncertainty influences virtually every aspect of human behavior, from investment decisions and consumption patterns to entrepreneurship and long-term planning.
“Without effective risk management, economic actors become cautious. Investments decline. Innovation slows. Growth becomes limited”
He stated that through pooling, diversification and risk transfer, insurance allows people, companies and governments to undertake productive activities without bearing the full burden of uncertainty.
“Consequently, the insurance industry occupies a unique strategic position within each economy. It mobilizes long-term savings, facilitates investment, supports financial stability, protects households, promotes entrepreneurship, encourages capital formation and supports economic growth.
“Agriculture cannot prosper without crop insurance. Infrastructure development cannot advance sustainably without construction and engineering coverage. Trade cannot expand without marine insurance. Credit markets cannot deepen without adequate protection mechanisms. Energy projects cannot attract investment without strong risk transfer structures.
“In fact, insurance is often described as the invisible infrastructure of economic development because its contribution, although often unnoticed, is indispensable.”
Omosehin noted that “perhaps the greatest economic opportunity facing our industry lies in expanding insurance penetration throughout Nigeria. Millions of Nigerians remain uninsured or underinsured.
“This protection gap represents a development challenge, but also an extraordinary opportunity. A truly inclusive insurance sector strengthens economic resilience at all levels of society. It protects households from financial crises. It allows small businesses to recover from losses. It supports agricultural productivity. It promotes financial inclusion. It contributes to poverty reduction and social stability.
“Therefore, the future requires innovative solutions that include microinsurance, agricultural insurance, inclusive health protection mechanisms and technology-based distribution platforms designed to reach underserved populations.
“Insurance products must become more affordable, more accessible, more understandable and more responsive to the realities of Nigerian consumers.”
He reaffirmed that “building a resilient insurance industry is our collective responsibility. Insurers, reinsurers, brokers, loss adjusters, technology providers, policymakers, professional bodies, educational institutions, development partners and consumers have vital roles to play.
“The challenges we face are too complex for isolated solutions. Whether addressing climate risks, cyber threats, disaster financing, infrastructure protection, financial inclusion or operational resilience, collaboration will remain indispensable,” said the Commissioner.
WATCH THE BEST VIDEOS FROM Newslodge TV