Industry experts have said that Nigeria’s ongoing insurance recapitalisation must be matched with deliberate investments in skills, technology and market expansion to deliver real value to the economy and the public.
Speaking on the state of the industry, former President of the Chartered Insurance Institute of Nigeria, Edwin Igbiti, said the current phase calls for deep self-assessment and reinvention by insurance professionals.
“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.
According to him, recapitalisation creates room for investment, but that opportunity must be used to modernise operations and expand coverage, particularly to underserved segments of the population. He said the expansion of compulsory insurance should push operators to improve their 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.
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 the need for skills enhancement cuts 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,” Igbiti said.
Echoing similar views, the Executive Secretary and Chief Executive Officer of the Nigerian Council of Registered Insurance Brokers, Tope Daramola, said the industry has moved into a consolidation phase that presents both challenges and opportunities, particularly for insurance brokers.
He said the consolidation process, which is expected to gather momentum this year, would have implications for the broking sector 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.
According to him, brokers have a critical role to play in expanding insurance penetration and ensuring that industry reforms translate into real market growth. He noted that while initiatives such as the NIIRA have provided a framework, operators must generate the momentum needed to convert policy into tangible outcomes.
“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 explained 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, adding that brokers would be central to expanding the market and maximising the benefits of the new capital base.
He emphasised 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.
Together, the experts argued that while recapitalisation is a necessary step, 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.
Professional services firm PwC, in its 2026 outlook, highlighted insurance as one of the sectors set to drive growth. “Economic growth in 2026 is expected to remain anchored in services, particularly ICT, finance and insurance, and real estate, reflecting sustained digital adoption, financial deepening, and urban demand. This service momentum should support headline GDP growth but may continue to concentrate output in capital- and technology-intensive sectors. Limited spillovers into employment-intensive activities could weaken the transmission of growth to jobs and household incomes.”
PwC also maintained that investor interest in the finance and insurance sector would grow in 2026, following a strong 2025 performance. “The sector attracted over 92 per cent of capital importation and about $3.1bn of foreign inflows in Q1 2025. In 2026, the impact of major financial reforms introduced in 2025 will begin to materialise. The National Insurance Industry Reform Act, which consolidates insurance laws, raises minimum capital requirements, and expands compulsory coverage, will deepen market reach and enhance consumer trust. The insurance sector embraced insurtech, with NAICOM and fintechs collaborating on digital platforms to boost product innovation and access. This momentum is expected to continue in 2026, fuelled by strong investment flows, growing developer talent, and expansion in embedded finance,” the outlook stated.
Meanwhile, as part of efforts to strengthen the implementation of the Nigerian Insurance Industry Reform Act 2025, the Nigerian Insurers Association has commenced capacity-building for underwriters on compulsory insurance provisions.
In Lagos, the NIA kicked off a two-day workshop on Compulsory Container Insurance under Section 203 of the NIIRA 2025.
The Director-General of the NIA, Mrs Bola Odukale, in her opening remarks, emphasised 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 not only strengthen professional capacity but also enhance effective implementation of compulsory insurance provisions for the overall benefit of the economy.
The two-day workshop ended on Friday. No fewer than 40 underwriters involved in container insurance attended the training at the Insurers’ House, Victoria Island, Lagos.
Facilitators at the workshop included the Director at the Nigerian Shippers Council, Mrs Margaret Ogbonnah; Controller 1 Technical at the NIA, Mr Soji Oni; and Chief Executive Officer of Ironlink Communications, Mr Owolabi Longe, among others.
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