NAICOM boss tasks insurance directors on governance reforms....

The Commissioner for Insurance, Mr Olusegun Ayo Omosehin, has identified stronger corporate governance, effective board oversight and sustainable risk management as critical to building a resilient insurance industry capable of supporting Nigeria’s economic growth and development.

The NAICOM boss gave the charge at the 2026 Insurance Directors’ Conference in Lagos, urging board members of insurance companies to strengthen governance structures, improve accountability and take greater responsibility for the long-term financial health of their institutions.

The conference, themed “Recapitalisation to Resilience: Leading the Risk-Based Capital (RBC) Era”, brought together industry leaders and stakeholders to examine the responsibilities of insurance boards in navigating regulatory changes, strengthening institutional capacity and positioning the sector for sustainable growth.

Omosehin said the changing regulatory and business environment required directors to move beyond routine board meetings, management presentations and formal compliance procedures to embrace more active and informed oversight.

He urged directors to ask difficult questions, challenge management assumptions and ensure that strategic decisions were based on reliable information, sound judgement and a clear understanding of the risks facing their institutions.

According to him, effective corporate governance must go beyond the existence of board structures and policies, requiring directors to demonstrate independence, exercise sound judgement and hold management accountable for performance and risk management.

He stressed that the financial sustainability of insurance companies depended not only on capital adequacy but also on the quality of leadership, discipline in decision-making and the ability of boards to anticipate and respond to emerging risks.

The Commissioner’s message comes at a critical point for the Nigerian insurance industry, which is undergoing recapitalisation and transitioning towards a risk-based capital framework. The reforms are intended to strengthen insurers’ capacity to absorb shocks, improve claims-paying ability and build public confidence in insurance services.

However, stronger capital positions alone may not guarantee a resilient industry without corresponding improvements in governance, underwriting discipline, transparency and operational efficiency.

For an industry expected to mobilise long-term funds, protect businesses and households against financial losses, and support investment across the economy, weak governance and inadequate risk oversight could undermine the benefits of regulatory reforms.

A major highlight of the conference was the appointment of former President of the African Development Bank, Dr Akinwumi Adesina, as Insurance Ambassador.

His appointment is expected to provide an influential platform for promoting insurance awareness, strengthening public confidence and highlighting the sector’s contribution to economic development.

Adesina’s experience in development finance and economic transformation also brings attention to the potential role of insurance in mobilising domestic capital, supporting businesses, financing infrastructure and protecting investments against risks.

The conference underscored the need for the industry to translate regulatory reforms and stronger institutional capital into better services, greater public trust and a more meaningful contribution to Nigeria’s economic development.

Ultimately, the transition from recapitalisation to resilience will depend on whether insurance companies can combine stronger balance sheets with responsible leadership, effective governance and the capacity to meet their obligations to policyholders.