Nigeria’s insurance industry is undergoing a significant transformation, with experts emphasizing the need for deliberate investments in skills, technology, and market expansion to drive growth and deliver value to the economy. The ongoing recapitalization of insurance companies is seen as a crucial step, but it must be complemented by modernization of operations, expansion of coverage, and improvement of distribution channels.
According to Edwin Igbiti, former President of the Chartered Insurance Institute of Nigeria, the industry’s relevance has become more critical in the current economic climate. Igbiti stressed that professionals must upgrade their technical capacity and mindset to keep pace with increasingly informed clients. “We all have to go and discover ourselves, rediscover ourselves, judging by the narrative, the art, and the new art,” he said.
The Executive Secretary and Chief Executive Officer of the Nigerian Council of Registered Insurance Brokers, Tope Daramola, echoed similar views, noting that the industry has moved into a consolidation phase that presents both challenges and opportunities. Daramola said that brokers have a critical role to play in expanding insurance penetration and ensuring that industry reforms translate into real market growth.
The consolidation process, expected to gather momentum this year, will have implications for the broking sector as insurers strengthen their capital base and underwriting capacity. Daramola emphasized that professionalism and ethics will be crucial as the industry evolves, noting that growth and consolidation cannot be sustained without strong professional standards.
A recent report by PwC highlighted insurance as one of the sectors set to drive growth in 2026, with investor interest in the finance and insurance sector expected to grow following a strong 2025 performance. The report noted that 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.
In a related development, the Nigerian Insurers Association has commenced capacity-building for underwriters on compulsory insurance provisions. A two-day workshop on Compulsory Container Insurance under Section 203 of the NIIRA 2025 was held in Lagos, with over 40 underwriters in attendance. The workshop aimed to strengthen professional capacity and enhance effective implementation of compulsory insurance provisions for the overall benefit of the economy.
As Nigeria’s insurance industry continues to evolve, it is clear that recapitalization is only one part of a broader transformation. To drive sustainable growth, the industry must prioritize investments in skills, technology, and market expansion, while maintaining strong professional standards and ethics. With the right approach, the industry can deliver real value to the economy and the public, and contribute to the country’s economic development.
