Nigeria’s insurance industry is attracting renewed investor interest as regulatory reforms push insurers to raise capital and strengthen governance ahead of the recapitalisation deadline.

Driven by the Insurance Reform Act and reinforced by recent circulars issued by the National Insurance Commission (NAICOM), the reform cycle is compelling insurers to raise fresh capital, strengthen governance frameworks and sharpen underwriting discipline, repositioning the sector for sustainable growth after years of weak performance.

Commenting on the reform direction at the weekend, the Commissioner for Insurance, Segun Omosehin, said the commission’s focus is to build a stronger, more credible insurance market that can protect policyholders and attract long-term investment.

“The recapitalisation and market conduct reforms are designed to ensure that insurance companies are financially sound, well governed and capable of meeting their obligations to policyholders. This will ultimately strengthen confidence in the industry,” Omosehin said.

Several insurers have already returned to shareholders for capital injections, while others are pursuing strategic partnerships, rights issues and potential mergers to meet the new regulatory thresholds.

The early compliance is increasingly viewed as a pointer to quality management, a stronger balance sheet and higher future earnings.
The Nigerian Insurers Association (NIA) said operators broadly support the reform agenda, noting that stronger capital and clearer rules would improve industry stability and competitiveness.

The Director-General of the association, Bola Odukale, said the reforms would help to reposition insurance as a credible risk-management tool in the economy.