BY NGOZI ONYEAKUSI

The Nigerian Insurers Association (NIA) has challenged insurance companies to translate the N1.079 trillion capital injected into the industry through the recapitalisation exercise into stronger underwriting capacity, improved claims settlement and greater public confidence.

Chairman of the NIA, Mrs. Ebelechukwu Nwachukwu, gave the charge at the BusinessDay Insurance Conference 2026 held in Lagos, with the theme: “From Capital to Capacity: Driving Growth, Innovation, and Trust in Nigeria’s Insurance Sector.”
Nwachukwu said the recapitalisation exercise had produced a stronger and better-capitalised insurance sector, with 50 insurance and reinsurance companies successfully meeting the new capital requirements.

According to her, the exercise has resulted in capital in excess of N1.079 trillion and attracted both domestic and foreign investment into the sector, as investors see stronger governance, a clearer regulatory environment and growth prospects.

She, however, cautioned that capital should not be regarded as the destination, stressing that the real test of the recapitalisation would be its impact on policyholders and the wider economy.

“The real question before us is whether the public will see the difference,” she said, noting that the value of recapitalisation would ultimately be judged by what it delivers to policyholders rather than what appears on companies’ balance sheets.

The NIA chairman identified disciplined underwriting, prudent risk management and adequate pricing as critical to ensuring that increased capital translates into sustainable growth.

She also called for greater use of technology, Insurtech partnerships, digital channels and products targeted at underserved segments to expand insurance coverage across the country.

According to her, stronger capital positions give insurers the capacity to pursue opportunities to reach Nigerians who have remained outside the insurance market.
Nwachukwu further identified trust as a critical factor in deepening insurance penetration, saying improvements in claims delivery, transparency and customer experience would strengthen public confidence in the industry.

“Trust is earned one claim at a time,” she said, adding that prompt and fair claims settlement remained central to achieving deeper market penetration.

She said the NIA would support its members through advocacy, regulatory guidance and capacity-building initiatives aimed at helping operators translate stronger capital into better services, faster claims settlement and wider insurance penetration.

She added that the association would promote professionalism and market conduct while working with the National Insurance Commission (NAICOM) to ensure that the benefits of recapitalisation reach policyholders and other stakeholders.

Nwachukwu disclosed that the NIA would also strengthen expertise in specialised areas including energy insurance, climate-related insurance, agricultural insurance, reinsurance, risk management and governance.

She said the association would continue to invest in innovation, digital distribution and products designed for underserved Nigerians as part of efforts to convert the industry’s stronger capital base into practical capacity and growth.

The NIA chairman stressed that achieving these objectives would require collaboration among insurers, reinsurers, brokers, regulators, investors and the media.

She said the industry must now focus on translating recapitalisation into stronger underwriting capacity, sustainable growth, improved customer experience, efficient claims delivery and greater public confidence in insurance.