NAICOM pushes insurers to rebuild trust, deepen public awareness

The National Insurance Commission (NAICOM) has called on insurance operators to deepen public awareness, simplify products and claims processes, and adopt customer-focused innovations to rebuild trust and expand insurance penetration in Nigeria.

Olusegun Ayo Omosehin, commissioner for Insurance/CEO, NAICOM speaking at the opening ceremony of Insurance Week 2026 held in Lagos, said the industry must move beyond “generic messaging” and embrace more targeted and relatable engagement strategies that connect insurance products to the everyday realities of Nigerians.

Represented by Ekerete Ola Gam-Ikom, deputy commissioner for Insurance, Finance and Administration, Omosehin said public awareness remains central to the growth and sustainability of the insurance industry, stressing that without understanding and trust, insurance adoption would remain limited.

“Without awareness, there can be no demand. Without understanding, there can be no trust. And without trust, sustainable growth cannot be achieved,” he said.

The NAICOM boss noted that despite the importance of insurance as a critical risk management tool, inadequate public understanding of insurance products, processes, and benefits continues to limit the sector’s impact.

He said the industry must rethink its communication approach by engaging customers in languages they understand, through platforms they trust, and with practical examples that resonate with their daily experiences.

“It is not enough for people to simply know that insurance exists, they must understand how it works, why it matters, and how it can protect their lives, assets, and aspirations,” Omosehin stated.

Yetunde Ilori, president/chairman of Council of the CIIN, in her welcome remarks said the Insurance week themed “Insurance: A Future Redefined’ is part of broader efforts to deepen insurance awareness, counter long-standing misconceptions, and improve financial inclusion across the country.

“We want everyone to be educated about insurance for financial stability and economic growth to counter the misconceptions out there about insurance. We cannot counter such misconceptions in our offices,” she said.

The weeklong campaign seeks to build on the momentum generated during the inaugural edition held in 2025.

Omosehin, continuing disclosed that NAICOM has continued to promote financial literacy, consumer education, and transparency through strategic partnerships and innovative communication channels targeted at underserved communities, small businesses, and emerging sectors of the economy.

The commissioner, however, stressed that rebuilding confidence in insurance should not rest solely on the regulator, insisting that insurers must take greater responsibility in reshaping public perception.

He criticised the long-standing perception that insurance companies design products without adequately reflecting customer needs, urging operators to shift from a product-centric model to a customer-centric approach.

“Insurers must deliberately transition from a product-centric approach to a customer-centric model. This entails actively involving clients in the product development process, seeking their input, understanding their expectations, and designing solutions that align with their real-life needs,” he said.

Omosehin added that products designed around customer realities would become more accessible, affordable, and trusted, while also supporting strategic sectors such as infrastructure, agriculture, and micro, small and medium enterprises (MSMEs).

He also urged insurers to simplify policy documentation and improve claims communication, describing claims settlement as the “moment of truth” in insurance.

“Delays, ambiguities, or perceived unfairness in claims settlement not only erode trust but also weaken confidence in the entire system,” he warned.

On regulatory reforms, the NAICOM chief described the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as a landmark legislation that would strengthen corporate governance, policyholder protection, transparency, and industry resilience.

According to him, one of the key highlights of the reform law is the establishment of the Insurance Policyholders’ Protection Fund, designed to safeguard policyholders in cases of insurer insolvency or financial distress.

“This is a critical development, as confidence in any insurance market is built on the assurance that policyholders’ interests are safeguarded under all circumstances,” he said.

Omosehin further noted that the reform law would create an enabling environment for innovation, operational efficiency, and market expansion through stronger capital requirements and enhanced regulatory supervision.

He, however, cautioned that the success of the reforms would depend largely on effective implementation and sustained commitment from regulators, insurers, brokers, agents, and other stakeholders.

The commissioner also highlighted the growing role of technology in transforming the insurance sector, noting that digital platforms, data analytics, and insurtech solutions could improve customer experience, streamline claims management, and expand insurance access to underserved populations.

He stressed the need for responsible deployment of technology, particularly in the areas of data privacy, cybersecurity, and inclusion.

“The future of Nigeria’s insurance industry rests in our hands as practitioners. We stand at a defining crossroad, a moment charged with opportunity, laden with responsibility, and demanding decisive action,” Omosehin said.

He urged stakeholders to use Insurance Week 2026 as a platform for meaningful engagement and actionable outcomes that would strengthen accountability, transparency, innovation, and public trust across the industry.

“The Nigerian insurance industry holds immense potential not only as a key component of the financial services sector but also as a catalyst for national growth and development,” he added.