Nigeria’s insurance industry must convert the N1.079tn raised through its recapitalisation exercise into faster claims settlement, stronger underwriting capacity and better customer service, the Nigerian Insurers Association has said.
The association warned that stronger balance sheets would have little value if insurers failed to meet their contractual obligations, noting that policyholders were increasingly demanding accountability and better value for their premiums.
NIA Chairman, Ebelechukwu Nwachukwu, said the industry must move beyond celebrating the capital-raising exercise and demonstrate tangible improvements in service delivery, innovation and insurance penetration.
Nwachukwu, who is also the Managing Director and Chief Executive Officer of Rex Insurance Limited, made the remarks at an industry event themed ‘From Capital to Capacity: Driving Growth, Innovation, and Trust in the Nigerian Insurance Sector’.
“We must resist the temptation to celebrate the recapitalisation as an end. The real test lies in translating stronger balance sheets into underwriting capacity, innovation, better claims service, and wider penetration,” she said.
She urged industry leaders to uphold sound underwriting standards, strengthen risk management, improve customer service and pursue sustainable growth, warning that complacency could erode the gains of the recapitalisation exercise.
She said the industry had spent decades building its capital base, adding that the priority now was to ensure the stronger financial position delivered measurable benefits to policyholders.
Nwachukwu said the industry’s success would ultimately depend on businesses being able to obtain local insurance cover for larger risks, families receiving prompt and fair claims settlements, and more Nigerians recognising insurance as relevant to their daily lives.
“The value of recapitalisation will be judged by what it delivers to policyholders, not by what it says on a balance sheet,” she said.
She cautioned that increased capital must be supported by disciplined risk assessment and appropriate pricing to ensure insurers do not pursue growth at the expense of financial stability.
She also urged insurers to leverage technology, digital distribution channels and insurtech partnerships to expand coverage to underserved communities and customer groups.
Nwachukwu said Nigeria’s low insurance penetration offered operators an opportunity to develop products tailored to the needs of individuals and businesses yet to access insurance services.
She stressed that public confidence was crucial to the industry’s growth, warning that delays in claims settlement and disputes over contractual obligations could erode trust and discourage potential policyholders.
