The National Insurance Commission (NAICOM) has launched the Insurance Sector Strengthening Programme (ISSP), a strategic initiative aimed at deepening insurance penetration, rebuilding public trust and positioning the industry as a stronger contributor to Nigeria’s economic development.

It is also targeting an increase in Nigeria’s insurance penetration from about 0.5 per cent to 1.5 per cent of Gross Domestic Product (GDP) by 2028.

Commissioner for Insurance, Olusegun Ayo Omosehin, who spoke during the official launch of the programme in Abuja yesterday, said the initiative was designed to accelerate the transformation of the insurance sector into a more inclusive, innovative, resilient and trusted industry.

According to him, the programme comes at a time when insurance penetration in Nigeria remains significantly below its potential despite the size and growth of the nation’s economy.

Omosehin identified limited public understanding of insurance, inadequate coverage, trust deficit, capacity gaps and fragmented distribution channels as some of the factors constraining the industry’s growth.

He, however, said that the challenges presented opportunities for the industry to develop innovative solutions, strengthen coordination among stakeholders and deepen engagement with consumers.

The ISSP, he explained, is built around six critical pillars: advocacy and policy, awareness and education, capacity building, gender inclusion, youth engagement, and Micro, Small and Medium Enterprises (MSMEs) and value chain development.

Omosehin said the awareness and education component would be critical to improving insurance uptake, stressing that no insurance market could thrive where consumers lacked adequate understanding of insurance products and their benefits.

He said the programme would deploy targeted campaigns, stakeholder education and innovative communication approaches to strengthen insurance culture and financial literacy among Nigerians.

Chairman of the Nigerian Insurers Association (NIA), Ebelechukwu Nwachukwu, said the association welcomed the ISSP, describing it as a timely framework to address the structural challenges that limit the growth of insurance in Nigeria.

She said insurers were ready to work with NAICOM and other stakeholders to improve public confidence, expand distribution, strengthen claims settlement and develop products that respond to the needs of individuals, families and businesses.

Also speaking, Chairman of the committee, Senator Adetokunbo Abiru, said the launch came at a defining moment for Nigeria’s economic transformation.

Abiru, who was represented by his Special Adviser, Victor Inedu, said a strong insurance industry was necessary to protect lives and assets, support businesses, mobilise long-term capital and provide the confidence required for investment and economic growth.