The Nigerian insurance sector is undergoing significant regulatory changes under the leadership of Ayo Omosehin, the Commissioner for Insurance at the National Insurance Commission (NAICOM). Omosehin’s approach, focused on strengthening the financial stability of insurance firms, is causing concern among some insurance executives, particularly those running weaker companies. From his first day in office, Omosehin made it clear that he would enforce a zero-tolerance policy towards firms unable to meet their financial obligations, prioritizing the protection of policyholders and enhancing public trust in the sector.
In October 2024, NAICOM took a bold step by removing the board of African Alliance Insurance, a life insurance firm that had struggled to settle financial obligations, including annuity payments. Omosehin’s move sent a clear message to the industry: firms that fail to maintain sound financial practices will face intervention. During the first Insurers’ Committee meeting, he urged insurance executives to settle all outstanding claims by the end of 2024, emphasizing that the industry’s credibility depends on prompt and genuine claim payments. Furthermore, Omosehin encouraged companies to assess their financial health and consider recapitalization efforts to meet new regulatory requirements.
Omosehin’s leadership has also focused on aligning the insurance sector with Nigeria’s broader economic goals. He has called for more collaboration within the industry and highlighted the importance of technological advancements and regulatory compliance, including the use of artificial intelligence in insurance practices. Despite some resistance from weaker firms, Omosehin’s actions signal a commitment to a more transparent, accountable, and financially stable insurance industry in Nigeria, with a clear focus on safeguarding the interests of policyholders and the industry’s long-term growth.
