Olufemi Adeyemi
Nigeria’s ongoing insurance recapitalisation, while necessary, must be accompanied by deliberate investments in skills development, technology and market expansion to deliver meaningful value to the economy and the public, industry experts have warned.
In recent comments on the state of the sector, former President of the Chartered Insurance Institute of Nigeria, Edwin Igbiti, argued that the current phase calls for a deep reassessment and reinvention by insurance professionals.
He said the industry must “rediscover itself,” especially in the face of shifting customer expectations and a changing economic landscape.
“We all have to go and discover ourselves. Rediscover ourselves, judging by the narrative, the art, and the new art. Opportunities, trying to break that barrier of customer awareness,” Igbiti said, noting that the industry’s relevance has become even more critical in the current economic climate.
Recapitalisation Alone Isn’t Enough
While recapitalisation is expected to create room for investment, Igbiti said the industry must use the opportunity to modernise operations and expand coverage, particularly to underserved segments of the population. He highlighted the expansion of compulsory insurance as a key driver that should push operators to improve distribution channels and underwriting processes.
“With technology being the rudiment, it’s also to modernise the underwriting quicker than ever before. And also help us to solve for the masses. The underserved demography has to be covered,” he said.
Skills Development: A Central Pillar
Igbiti stressed that skills development is central to the industry’s future, arguing that professionals must upgrade both their technical capacity and mindset to keep pace with increasingly informed clients.
“Professionals need to enhance their skills and knowledge. We need to upskill ourselves. Because the population and the people, the clients, are also becoming more aware than ever before,” he said.
He added that skills enhancement must be pursued across the entire insurance value chain—from underwriting firms to brokers, loss adjusters and other professionals—insisting that every segment must reassess its practices and standards.
“We all have to upskill ourselves,” he said.
Brokers Face Consolidation and Opportunity
Echoing similar views, the Executive Secretary and CEO of the Nigerian Council of Registered Insurance Brokers, Tope Daramola, said the industry is now in a consolidation phase that presents both challenges and opportunities, particularly for brokers.
He noted that consolidation, which is expected to accelerate this year, will affect brokers as insurers strengthen their capital base and underwriting capacity.
“The consolidation will start this year. And this is posing some challenges, as well as opportunities,” Daramola said.
He explained that brokers play a critical role in expanding insurance penetration and ensuring that industry reforms translate into real market growth.
“It’s not just left to the operators to be able to generate the required momentum to convert NIIRA to Naira. And this will depend, more or less, on insurance brokers who are the foot soldiers of the industry,” he said.
Daramola added that consolidation among insurance companies would broaden underwriting capabilities, increasing the responsibility on brokers to grow their client base and deepen market reach.
“This will also be a major consideration for insurance brokers because it’s going to broaden the scope of underwriting capabilities of those companies,” he said.
Ethics and Professionalism Must Be Reinforced
He stressed that professionalism and ethics would be crucial as the industry evolves, noting that growth and consolidation cannot be sustained without strong professional standards.
“There is no way you talk about expanding the industry and consolidating on the gains without brokers playing ethically and professionally,” Daramola said.
He added that the council is focusing on improving the intellectual and knowledge base of brokers, describing them as core professionals within the insurance value chain.
“It is what you have that you give. So, they have to accelerate their knowledge in such a way as to be able to undertake their responsibilities of educating their clients and helping them to maximise fully the value of their insurances,” he said.
A Wider Transformation Beyond Capital
Together, the experts argued that recapitalisation is necessary, but it is only one part of a broader transformation. For Nigeria’s insurance industry to grow sustainably, they said, capital must be complemented by skilled professionals, ethical practice, modern technology and deliberate efforts to reach a wider market.
PwC Predicts Insurance Will Drive Growth in 2026
Professional services firm PwC, in its 2026 outlook, highlighted insurance as one of the sectors expected to drive growth. The firm noted that economic expansion will remain anchored in services such as ICT, finance and insurance, and real estate, driven by sustained digital adoption, financial deepening and urban demand.
PwC also predicted that investor interest in the finance and insurance sector would increase in 2026, following strong performance in 2025. The firm said the National Insurance Industry Reform Act (NIIRA), which consolidates insurance laws, raises minimum capital requirements, and expands compulsory coverage, would deepen market reach and strengthen consumer trust.
NIA Begins Capacity-Building for Compulsory Insurance
In a move to strengthen implementation of the NIIRA 2025, the Nigerian Insurers Association (NIA) has begun capacity-building for underwriters on compulsory insurance provisions.
In Lagos, the NIA held a two-day workshop on Compulsory Container Insurance under Section 203 of the NIIRA 2025.
The Director-General of the NIA, Mrs. Bola Odukale, emphasized the critical role of insurance in national development, noting that a well-regulated and legally backed insurance industry is vital to economic growth, investor confidence and public protection.
She urged participants to actively engage in the sessions, stressing that the knowledge gained would strengthen professional capacity and enhance effective implementation of compulsory insurance provisions for the overall benefit of the economy.
The workshop concluded on Friday, with over 40 underwriters participating. Facilitators included representatives from the Nigerian Shippers Council, the NIA, and private sector experts.
