2024 Insurance Industry Performance:
The 2024 performance of the insurance industry revealed a complex landscape marked by significant growth in certain areas alongside persistent and emerging challenges. While specific data for the entire year of 2024 is still being consolidated, the trends and available reports offer valuable insights.
Available data up to the end of Q3 2024 indicated robust growth in gross premiums. The report from our regulator noted a 61% year-on-year increase in Q3 2024, reaching N1.2 trillion. This growth was largely driven by the non-life insurance sector, which constituted approximately 69% of the total premium income.
Within the non-life business, Fire, Oil & Gas insurance were significant contributors to the increased revenue. All non-life business products showed robust quarter-on-quarter growth.
The life insurance business also experienced substantial growth, with the report indicating a 45% quarter-on-quarter increase in Q3 2024. Group Life emerged as the largest premium-generating component within the life segment.
Despite a rise in the net loss ratio in Q2 2024 compared to Q1 2024, the Nigerian insurance market remained profitable overall. The total assets reached N3.9 trillion by the end of September 2024, demonstrating a healthy expansion.

Impact of Police Enforcement on 3rd-Party Motor Insurance:
The stricter enforcement of Third-Party Motor Insurance by the Nigeria Police Force, which commenced on February 1, 2025, is generating significant effects on both the insurance industry and policyholders in Nigeria.
The most immediate and significant impact is the substantial increase in the purchase of third-party motor insurance policies. This surge in demand directly translates to higher premium income and overall revenue growth for insurance companies. Available reports indicated a significant increase in the uptake, and this trend is expected to be amplified by continued enforcement in 2025 and beyond.
However, the increase in uptake implies increase in the volume of claims and overall potential liabilities of insurance companies. This will necessitate that insurance companies enhance their claims processing efficiency and customer service capabilities to handle the increased workload and ensure policyholder satisfaction.
Stricter checks by the police make the use of fake or invalid insurance certificates riskier. This enforcement, coupled with the use of the Nigeria Insurance Industry Database (NIID), is expected to reduce the prevalence of fraudulent policies. As more genuine policies are purchased and recorded in the NIID, the overall quality and reliability of insurance industry data will likely improve. This can aid in better risk assessment and management for insurers.
More importantly, the enforcement drive raises public awareness about the mandatory nature and benefits of third-party insurance. Timely and efficient payment of claim obligations will gradually lead to increased public trust in the insurance sector. Interestingly, the increased awareness and enforcement can create opportunities for insurers to develop more attractive and user-friendly third-party insurance products and leverage technology (Insurtech) to improve service delivery.
For policyholders, the primary impact is a higher rate of compliance with the mandatory third-party motor insurance law to avoid potential penalties. Stricter enforcement ensures that more victims of road accidents involving insured vehicles can receive the legally mandated financial compensation for bodily injury, death, or property damage (up to N3 million for property damage). Genuine third-party insurance policies in Nigeria now include coverage under the ECOWAS Brown Card scheme, offering protection when driving in other West African countries. Compliant policyholders avoid the risk of facing fines (up to N250,000), vehicle impoundment, and potential imprisonment for driving without valid third-party insurance. Having valid insurance and adhering to the law can provide vehicle owners with a greater sense of security and peace of mind while driving.
For previously uninsured vehicle owners, purchasing third-party insurance represents a new mandatory expense, which can be a financial strain for some, especially given the prevailing economic conditions. However, the financial strain of meeting potential liabilities arising from road accidents coupled with the legal implications of non-compliance will be more severe.
Policyholders need to be well-informed about the scope and benefits of their third-party insurance policies and how to verify their authenticity to avoid purchasing fake policies. NAICOM advises verifying insurers on their website.
Overall, the stricter enforcement of third-party motor insurance in Nigeria is a crucial step towards ensuring financial protection for road accident victims and improving legal compliance. While it offers significant opportunities for the insurance industry in terms of growth and credibility, it also presents challenges related to claims processing and the need for enhanced customer service. We are committed to a timely processing and payment of all valid claims. For policyholders, it ensures greater financial security for third-party liabilities and avoidance of penalties. Effective regulation, transparent enforcement, and continuous public education are essential for the successful implementation and long-term benefits of this initiative.
Effective enforcement also requires closer collaboration between the National Insurance Commission (NAICOM), the Nigeria Insurers Association (NIA), other industry stakeholders and the Nigeria Police Force to ensure smooth implementation whilst addressing arising issues. NIA is currently engaging the Nigerian Police Fore and the Federal Road Safety Commission to ensure seamless enforcement

Reaction to the Nigerian Insurance Industry Reform Bill:
The Nigerian Insurance Industry Reform Bill 2024 is a significant piece of legislation aimed at overhauling the regulatory framework of the insurance sector in Nigeria. My reaction to this bill is largely positive, as it appears to address several long-standing issues and aims to modernize and strengthen the industry for the benefit of all stakeholders.
The existing Insurance Act of 2003 is outdated and does not adequately address the current realities and evolving needs of the Nigerian insurance market. The reform bill is a timely and necessary step to bring the legal framework in line with contemporary challenges and international best practices.
The proposed significant increase in the minimum capital requirements for insurance companies (non-life: N15 billion, Life: N10 billion, Reinsurance: N35 billion) will enhance the financial capacity of insurers to underwrite larger risks, improve their solvency, and increase public confidence in their ability to meet obligations. It also aims to improve the industry’s retention capacity and reduce reliance on foreign reinsurance.
The bill emphasizes a shift towards risk-based supervision, which is a more sophisticated and effective approach to regulation. This will allow the National Insurance Commission (NAICOM) to better monitor and manage risks within the industry, ensuring stability and protecting policyholders’ interests.
One key objective of the bill is to strengthen the protection of policyholders. This is vital for building trust in the insurance sector and encouraging greater participation from the public. Specific provisions for consumer protection will be crucial in achieving this.
The bill introduces stricter licensing requirements for insurance operators, directors, and management, ensuring that only fit and proper persons are allowed to operate in the industry. This will help in maintaining professionalism and ethical standards.
A stronger and more capitalized insurance industry, operating under a modern regulatory framework (the NAICOM Act is also currently being reviewed), has a greater potential to contribute significantly to Nigeria’s GDP and overall economic development.
As of today, the Nigerian Insurance Industry Reform Bill 2024 has made significant progress. Both the Senate and the House of Representatives have passed the bill. The House of Representatives concurred with the Senate’s version in March 2025, signaling the final passage by the National Assembly. The bill is now awaiting presidential assent to become law. NAICOM and industry stakeholders have expressed optimism that the President will sign the bill into law, and once enacted, the Nigerian Insurance Industry Reform Act 2024 is expected to have profound implications for the industry:
Insurance companies will be required to meet the new minimum capital requirements within a specified timeframe. This will likely lead to capital raising, mergers and acquisitions.
I believe that with stronger capital bases, insurers will have the capacity to underwrite larger and more complex risks, potentially reducing the need for significant foreign reinsurance. The higher capital requirements will enhance the solvency and financial stability of the insurance industry, making it more resilient to economic shocks and large claims.
More importantly, a more robust and well-regulated industry is likely to inspire greater public trust and encourage more Nigerians to take up insurance policies, leading to increased penetration.
Furthermore, the emphasis on risk-based supervision and a streamlined regulatory framework could lead to greater operational efficiency within insurance companies. Competition will increase as a stronger industry may attract more players and investments, leading to increased competition and potentially better products and services for consumers. To operate efficiently and cater to emerging customer needs in a more robust market, insurers will likely increase their adoption of technology and innovation
Claims Payment and NAICOM Publication:
The hallmark of any insurance company worth its license is the payment of claims. Claims. The 2024 claims payment data for the industry is still being compiled, however, in 2023, the insurance industry paid N536.5 billion in claims, which is about 53% of the gross written premium for that year. Despite the quantum of the claims paid by the industry, there is still significant improvements to be made on the ease of making a claim and general improvement of the claim process. This is the only way to build public trust and ensure the sustainability of the sector.
By publishing the names of insurance companies with outstanding claims and the details of these complaints, NAICOM is promoting transparency and demonstrating commitment to protecting the interests of policyholders. It sends a strong message to insurers that the regulator is taking the issue of unpaid claims seriously and is willing to take concrete action to ensure that policyholders receive their due compensation as at when due.
Whilst most companies will meet their claims obligations, it is believed that the threat of being publicly named and shamed, coupled with potential sanctions for non-compliance, is a strong incentive for insurance companies to prioritize the settlement of outstanding claims and improve their claims-handling processes. NAICOM has explicitly stated its zero tolerance for delays in settling genuine claims and has warned that non-payment could even lead to the cancellation of licenses.
We should also not lose sight of the fact that by making this information public and launching the NAICOM Complaint Management Portal, the regulator is empowering policyholders to be more informed and to utilize the official channels for resolving their grievances. This can help policyholders who may have felt helpless in the face of delayed or denied claims.
The publications can also help to identify systemic issues within specific insurance companies or the industry as a whole that contribute to the high volume of outstanding claims. This allows NAICOM to develop targeted regulatory interventions to address these underlying problems.
However, it is important to note that some insurers have reacted to these publications with concern, citing inaccuracies in the lists and a lack of active engagements prior to the publication. They argue that some listed claims have already been paid or are subject to ongoing disputes or are even fraudulent. The insurance companies are therefore strongly advised to engage the regulator by providing updates on each complaint listed against them, this will enable NAICOM update the list accordingly.
NIA will soon be inviting Fintechs to make a pitch on different innovations that will ensure that the claim process is shortened leading to improvement in the timely payment of claims

NAICOM Circulars on Solvency Regulation and their impact :
NAICOM’s Circulars on Solvency Regulation are a crucial tool for strengthening the Nigerian insurance industry, ensuring its stability, and protecting policyholders. These circulars, particularly those related to Risk-Based Supervision (RBS), reflect a proactive approach by the regulator to align the industry with international best practices like Solvency II.
I believe the move from a purely compliance-based regulatory framework to RBS is a significant step forward. RBS focuses on the insurer’s risk management approach and its capacity to meet obligations based on its specific risk profile. This is a more sophisticated and effective way to assess solvency compared to a one-size-fits-all approach. NAICOM’s circulars outlining the implementation of RBS are, therefore, commendable.
The circulars generally aim to increase NAICOM’s oversight role on companies based on their solvency margins. Higher solvency margins provide a greater buffer against unexpected losses, improve the industry’s capacity to absorb shocks, and ultimately increase the security of policyholders’ funds. Companies with solvency ratio below 200% will attract different regulatory scrutiny and intervention, potentially required to take corrective actions and be subjected to additional administrative compliance.
Furthermore, solvency regulations can influence how insurers invest their assets, as they need to ensure that their investments are sufficiently liquid and match the profile of their liabilities.
The emphasis on RBS in NAICOM’s circulars compels insurers to develop and implement robust risk management frameworks to identify, assess, and mitigate various risks that could impact their solvency.
However, by adopting RBS and moving towards frameworks similar to Solvency II, NAICOM is aligning the Nigerian insurance industry with global best practices. This can enhance the industry’s credibility and attractiveness to international investors and partners.
It is important for me to mention that solvency regulation is not static. NAICOM regularly issues circulars and updates its guidelines in response to evolving market conditions, emerging risks, and international developments. Insurers need to stay abreast of these changes and adapt their capital management and risk management practices accordingly.

Assessment on Tax Reform Bill and Industry Impact:
The Tax Reform Bill, currently under consideration at the National Assembly, has the potential to significantly impact the insurance industry. Although the bill is yet to be passed, my assessment is that any significant change to the tax laws will have multifaceted effects, encompassing both opportunities and challenges. It’s crucial to analyse the specific provisions of the bill to provide a more precise impact assessment, but based on general tax reform trends and potential areas of focus, here are my thoughts:
If the tax reform leads to a reduction in the tax burden for individuals and businesses, it could result in increased disposable income. This could, in turn, make insurance products more affordable and increase the propensity of individuals and businesses to purchase coverage, leading to a higher insurance penetration rate.
A well-designed tax reform can stimulate overall economic growth by encouraging investment, consumption, and business activity. A thriving economy generally translates to a stronger insurance market as businesses expand and individuals accumulate more assets to protect.
If the bill aims to simplify the tax system and reduce compliance burdens, it could indirectly benefit insurance companies by lowering their administrative costs associated with tax compliance.
A more transparent and efficient tax system, potentially resulting from the reform, could attract more foreign direct investment into Nigeria, including the insurance sector. This could bring in new capital, expertise, and innovation.
If the reform addresses any existing tax loopholes or disparities that unfairly disadvantage insurance companies compared to other financial institutions, it could create a more level playing field and foster fairer competition.
However, depending on the specific provisions, the tax reform could potentially increase the tax burden on insurance companies through changes in corporate income tax rates, treatment of insurance products like annuity, or other levies. This could reduce their profitability and potentially impact their capacity for capital accumulation and investment.
Changes in the taxation of investment income earned by insurance companies (from investments made with policyholders’ funds) could impact their profitability and their ability to provide competitive returns to policyholders, particularly for life insurance and annuity products.
The tax reform could have differential impacts on various insurance product lines. For example, changes in tax treatment of life insurance savings components or health insurance premiums could affect their attractiveness to consumers.
While simplification is a potential goal, the implementation of a new tax system can initially lead to increased compliance costs for businesses, including insurance companies, as they adapt to new rules and procedures.
The period leading up to and immediately following the implementation of a significant tax reform can create uncertainty in the market, potentially affecting investment decisions and business confidence within the insurance sector.
Changes in tax laws could also affect our reinsurance arrangements, potentially increasing the cost of reinsurance for local insurers if cross-border transactions are impacted.
Overall, the insurance industry stakeholders must continue to actively engage with the government during the legislative process to advocate for a tax regime that supports the growth and development of the insurance sector and recognizes its vital role in the economy by maintaining the VAT exemption on insurance premiums, ensuring a fair and competitive tax rate for insurance companies, considering tax incentives to promote insurance adoption, ensuring a smooth transition and providing sufficient time for compliance with any new tax regulations.

Overview of the Credit Guarantee Insurance Trends:
My assessment of the latest developments in credit guarantee insurance in Nigeria indicates a sector poised for growth and increased significance, driven by both government initiatives and the evolving needs of the financial ecosystem.
The Nigerian government has explicitly recognized the role of credit guarantee schemes in enhancing financial inclusion and broadening credit access, particularly for underserved populations like women and youth. The planned establishment of the National Credit Guarantee Company (NCGC), announced in early 2025, is a major development. This entity will partner with institutions like the Bank of Industry, the Nigerian Consumer Credit Corporation, and private sector players to provide loan guarantees, thereby encouraging lending to businesses and individuals. The NCGC is envisioned as a “partnership hub” to create a robust framework for risk-sharing within the financial system.
For our industry, credit life insurance is gaining prominence as a tool to secure loans and protect both borrowers and lenders. This type of insurance covers loan repayments in the event of the borrower’s death, permanent disability, critical illness, or job loss. Several insurance companies in Nigeria offer credit life insurance products tailored to different sectors (formal and informal) and loan types.
NAICOM, the insurance regulator has been in the forefront of deepening the market for credit guarantee insurance especially as it relates to government policy and engagements with international financing organizations. NAICOM emphasizes the need for insurers to be adequately capitalized and to follow sound risk management practices, which are crucial for underwriting any form of guarantee or credit-related insurance.
Furthermore, besides credit life insurance, some Nigerian insurance companies offer bonds and surety, which serve as a form of credit guarantee, protecting employers against non-performance by contractors. Export credit insurance, while not as widely discussed publicly as retail credit guarantees, is not often offered by some insurance companies to businesses engaged in international trade, helping to mitigate non-payment risks from foreign buyers. I should also mention here that the industry is working on offering export credit insurance on a wider scale in collaboration with the Nigerian Export Import Bank. Discussion has reached an advanced stage for its approval, adoption, and implementation.

Overall, insurers need to provide more credit guarantee coverages other than credit life, bonds and surety in order to fully protect businesses and mine the emerging opportunities.

Unlocking Opportunities in AfCFTA:
The Nigerian insurance industry recognizes the immense opportunities presented by the African Continental Free Trade Area (AfCFTA) and plans are at advanced stage to explore them.
NAICOM spearheaded the creation of the Nigerian Insurance Industry Committee on AfCFTA (NII-AfCFTA Committee) in May 2022 to coordinate the industry’s strategic response to AfCFTA. The Committee’s mandate includes liaising with the National Action Committee on AfCFTA and other relevant bodies to actualise the immense benefits under this arrangement.
The NII-AfCFTA Committee, with the support of NAICOM, had organized workshops and enlightenment programmes for insurance operators, brokers, and loss adjusters to raise awareness about the opportunities and challenges of AfCFTA and to strategize for effective participation.
A key focus of this initiative is on developing insurance products that cater to businesses operating across multiple African countries. This includes coverage for trade, investments, and multinational clients. The industry aims to capitalize on the AfCFTA’s Trade in Services protocol, which offers opportunities for increased financial integration and cross-border operations.
Currently, Nigerian insurers are considering establishing commercial presence in other African countries to tap into new markets directly. NAICOM has urged Nigerian brokers, loss adjusters, and insurers to improve their value proposition, professionalism, and service delivery to remain competitive in the expanded African market.
With the proposed increase in capital as provided by the Nigerian Insurance Industry Reform Bill, Nigerian insurance companies will be one of the most capitalised in Africa and this should boost our ability to deploy capital to writing risks across Africa. Having recognized the need for a skilled workforce, the industry is emphasizing capacity building in areas like risk management, underwriting, and claims administration to meet the demands of a larger and more integrated market. We will also embrace digital technology, which is seen as crucial for Nigerian insurers to operate efficiently across borders and enhance customer service delivery in a wider market. Cybersecurity is also a key consideration in this digital shift.
NAICOM is also committed to bilateral negotiations with other African regulators, underpinned by mutual recognition agreements, to ease cross-border operations and ensure regulatory alignment.
Furthermore, our industry recognizes the need for the harmonization of insurance regulations across African member states to reduce operational complexities and facilitate seamless cross-border service delivery, whilst we urge insurance operators, loss adjusters, and brokers to research and understand the regulatory frameworks in different African countries to operate effectively within the AfCFTA.
The success of these plans will be crucial for positioning Nigeria as a leading player in the African insurance market under the AfCFTA framework.

Position on Unreleased Allocation for Renewal of Federal Government MDA’s Insurance
Based on the latest reports, most Federal Government MDAs are facing substantial delays in the release of budgetary allocations for the renewal of their insurance policies for 2025. Some MDAs’ insurance coverage has already expired, leaving them without protection. Others are reportedly pleading with insurance companies to maintain coverage while they await the release of funds, this request cannot be accommodated by any insurance company as doing this will be against the “No Premium, No Cover” rule, which NAICOM has been strictly enforcing since 2013.
As operators, we are deeply concerned that the delay in releasing funds may result in government workers and assets remaining uninsured, leaving them vulnerable to financial losses in case of unforeseen events. The industry awaits the release of these allocations to ensure continuity of cover and adherence to the “No Premium, No Cover” principle.
The continuous protection of government’s human resources an assets, which potential can contribute to the economic development of the country remains our priority as an industry.
Dealing With Emerging Risks (climate change, cyber threats pandemics, and others)
The insurance industry is actively addressing emerging risks like climate change, cyber threats, and pandemics through innovative strategies and collaborative efforts.
Although it can be argued that investment in new products to address emerging risks is low, some players are currently taking steps to harness the opportunities. For instance, on climate change, insurance companies are leveraging advanced data analytics and AI to improve climate risk modeling, which enables more accurate predictions of extreme weather events and their impacts. Most insurance companies currently have parametric index yield agric insurance, we expect that in the coming months, a parametric insurance solution for flood risk will commence in Nigeria. Insurance companies are also introducing policies that incentivize sustainable practices, such as granting discounts for eco-friendly buildings or renewable energy projects. We are also partnering with governments and environmental organizations to fund climate-resilience projects and promote sustainable development. It may interest you to note that the 2025 WAICA Education Conference will be hosted by the Nigerian insurance industry in October, and it will focus on Climate change.
On cyber threats, some the insurers in the industry industry has developed specialized policies to cover data breaches, ransomware attacks, and business interruptions caused by cyber incidents. Some of our member companies are offering cybersecurity training and resources to clients, helping them strengthen their defences against potential threats while also collaborating with technology firms and cybersecurity experts in enhancing the industry’s ability to address evolving digital risks.
Overall, the insurance industry recognizes that traditional approaches to risk assessment and underwriting are insufficient for emerging risks. Innovation, collaboration, and a strong focus on technology and data are essential for developing effective solutions and ensuring the industry’s continued relevance and sustainability in the face of these evolving challenges.
Assessment of the global insurance trend:
Globally, the insurance sector maintained stable solvency and profitability levels in 2024, supported by strong underwriting performance and robust investment returns. The global insurance industry in 2025 is expected to see continued growth driven by rising demand and innovation. However, insurers will need to be agile and adapt to the evolving risk landscape, technological advancements, and changing customer expectations. The ongoing global trade war can have some impact on insurance business. Insurance companies that effectively leverage technology, develop innovative products, enhance customer engagement, and navigate the regulatory environment and emerging risks successfully will be best positioned for sustainable growth and profitability. The focus on closing protection gaps, particularly in areas like climate change and cyber risk, presents significant opportunities for the industry (especially in the developing economies) to demonstrate its value and relevance in an increasingly complex world.