Stakeholders have identified the Nigeria Insurance Industry Reform Act (NIIRA) as a major catalyst for deepening insurance penetration, strengthening consumer confidence and accelerating sustainable growth across the sector.

The incoming Chairman of the Nigerian Insurers Association (NIA), Ebelechukwu Nwachukwu, said the legislation provided a rare opportunity to reposition the insurance industry for stronger growth through enhanced capitalisation, improved governance standards, wider market access and stronger consumer protection.

Speaking during a pre-investiture media engagement in Lagos, Nwachukwu noted that the implementation of the Act marks the beginning of a transformative era for the insurance sector, particularly as companies intensify efforts to comply with the new regulatory requirements ahead of the July 2026 deadline.

According to her, the reform framework represents the most significant overhaul of the industry’s legal and regulatory architecture in decades and has the potential to strengthen resilience, rebuild public trust and position insurance as a key pillar of economic stability.

She said the recapitalisation would not only strengthen the financial capacity of insurance companies but also lay the foundation for product innovation, increased underwriting capacity and deeper market penetration.

“With the advent of the new Act, we are entering a transformative era that demands higher standards of governance, stronger capitalisation, improved consumer protection and deeper market penetration. This legislation presents us with a unique opportunity to rebuild trust, strengthen resilience, and reposition insurance as a vital engine of economic stability,” she said.

Nwachukwu, who is also the Chief Executive Officer of Rex Insurance Limited, identified low insurance penetration as one of the major challenges confronting the sector, stressing that capital strength alone would not be sufficient to drive growth.

She said the industry must pursue strategic partnerships with banks, fintechs, microfinance institutions and other distribution channels to extend insurance coverage to millions of underserved Nigerians.

Collaboration across the financial services ecosystem, she said, would be critical in transforming insurance from a niche product into a mainstream financial service accessible to individuals, households and small businesses.

Industry stakeholders have consistently identified Nigeria’s low insurance penetration as a major concern despite the sector’s significant growth potential and its role in mobilising long-term funds for economic development.

Beyond distribution, Nwachukwu stressed the need to address the trust deficit that has historically limited insurance adoption, noting that public understanding of insurance products remained weak.

She said her tenure would prioritise consumer education, simplify policy documentation and improve claims experience to help Nigerians better appreciate the value proposition of insurance.

Chairman of the Investiture Committee and Chief Executive Officer of AIICO Insurance Plc, Babatunde Fajemirokun, said the implementation of NIIRA 2025 has the potential to reshape the insurance landscape by creating stronger institutions, encouraging consolidation where necessary and improving the industry’s ability to support infrastructure development, investment and economic resilience.