Get Guardian on GoogleFormer President of the African Development Bank Group, Dr. Akinwumi Adesina, has challenged insurance industry leaders and regulators to rebuild public confidence, strengthen accountability and position the sector as a key driver of Nigeria’s $1 trillion economy ambition.
Adesina, who was named Global Ambassador for Insurance in Nigeria and Face of Insurance in the country, said the industry must move beyond conventional business practices and prioritise public trust, professional excellence, accountability and national development.
He spoke at the Nigeria Insurance Directors Conference, organised by the Chartered Insurance Institute of Nigeria (CIIN) in collaboration with the National Insurance Commission (NAICOM) in Lagos.
Delivering a keynote address titled, “Building the Nigerian Insurance Industry: Institutional Transformation, Public Accountability and National Economic Development,” Adesina said insurance must play a critical role in protecting the country’s productive assets, managing risks, supporting investments and mobilising long-term capital.
He noted that insurance penetration in Nigeria remained approximately 0.5 per cent of Gross Domestic Product (GDP), describing it as a significant gap in the country’s capacity to protect households, businesses and productive investments.
According to him, no economy can achieve sustainable growth without a strong insurance industry capable of protecting its wealth and supporting economic activities.
“Do not just build insurance companies. Insure the nation. Protect its wealth. Finance its growth,” he said.
Adesina stressed the need to rebuild public confidence in the industry, noting that the true value of insurance was demonstrated when policyholders suffered losses and received the protection promised to them.
He urged insurance companies to prioritise prompt and transparent claims settlement, insisting that valid claims must be honoured in accordance with contractual and regulatory requirements.
“When a policyholder pays an insurance premium, that policyholder deserves a premium service in return,” he said.
He also called on insurance boards to take greater responsibility for claims performance, customer complaints, corporate governance and management accountability.
The former AfDB president proposed that NAICOM institutionalise an annual public insurance industry accountability and performance report covering claims received and settled, outstanding claims, average settlement timelines, customer complaints, regulatory compliance, financial soundness and corporate governance.
He argued that the industry could not demand public trust while resisting public scrutiny.
On the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025, Adesina cautioned that raising capital alone would not guarantee institutional transformation.
“Recapitalisation is not the same as institutional transformation,” he said.
He explained that stronger capital must be supported by sound corporate governance, disciplined underwriting, adequate technical reserves, effective risk management and stronger reinsurance arrangements.
He urged board chairpersons and directors to strengthen oversight, scrutinise related-party transactions and ensure that internal audit, actuarial, compliance and risk-management functions operated independently.
Adesina also challenged NAICOM to strengthen risk-based supervision, ensure effective implementation of the industry’s reform framework and hold insurance institutions accountable for measurable results.
On the sector’s contribution to economic development, he called for increased insurance coverage across agriculture, infrastructure, manufacturing, energy, transportation, healthcare and housing.
He also urged insurance companies to invest a portion of their investible funds in commercially viable infrastructure and productive-sector projects, subject to policyholder obligations, liquidity requirements and applicable regulations.
He, however, cautioned that national development priorities must not override the financial interests of policyholders.
The former AfDB president further called for stronger domestic reinsurance capacity to enable Nigerian institutions to retain and prudently manage a greater proportion of insurable risks within the country.
He welcomed NAICOM’s 2031 targets of increasing insurance penetration to 10 per cent of GDP, extending active insurance coverage to 25 million Nigerians and developing 6,000 certified insurance professionals.
However, he said achieving the targets would require a departure from conventional business practices and a framework of measurable accountability involving the regulator, professional bodies and insurance companies.
He urged NAICOM to provide strategic direction, regulatory oversight and annual performance assessments, while the CIIN should strengthen professional development, certification, competence and ethical leadership.
He also called on insurance companies and their boards to establish measurable targets for expanding coverage, improving claims settlement, strengthening governance and investing in technology.
Adesina proposed an annual industry performance scorecard supported by quarterly monitoring and periodic independent assessments.
“The measure of success must be outcomes, not announcements,” he said.
He drew on his experience as Nigeria’s former Minister of Agriculture, his doctoral research on agricultural risks at Purdue University and his work on climate resilience and development financing during his tenure at the AfDB to underscore the importance of risk management in economic development.
Adesina offered to deploy his experience, international networks and leadership influence to support the growth and transformation of Nigeria’s insurance industry.
He said the industry’s future would be determined not merely by the capital raised or premiums collected but by the value delivered to policyholders and the confidence it inspired among Nigerians.
He called on regulators, professional bodies and industry practitioners to take collective responsibility for building institutions worthy of public confidence.
“The future of Nigerian insurance is not something to wait for. It is something we must deliberately build. And the time to begin is now,” he said.
