Insurance Facts & Updates

ILAN Leadership Visits NAICOM, Expresses Appreciation; Calls for Enhanced Training, Collaboration, and Stronger Market Compliance

The leadership of the Institute of Loss Adjusters of Nigeria (ILAN), led by its President, Pastor Ikechukwu Udobi, paid a courtesy visit to the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, at the National Insurance Commission (NAICOM).

Speaking on behalf of the Institute, the President expressed profound gratitude to the Commission and the Commissioner for Insurance for the successful revision of the Loss Adjusters’ Scale of Fees—an achievement he described as a significant milestone toward revitalizing the profession after decades of stagnation.

The ILAN President further emphasized the need for enhanced training and continuous capacity-building programmes, especially in specialized areas such as energy, oil & gas, and special risks. According to him, these efforts are crucial to elevating Nigerian loss adjusters to international standards. He also advocated for stronger collaboration between foreign and Nigerian loss adjusters to deepen knowledge-sharing and industry development.

Pastor Udobi stressed the importance of strict compliance with extant laws, regulations, and market guidelines, urging NAICOM to ensure that all market operators fully comply with statutory requirements in their operations. He also appealed for the Commission’s support in securing a befitting secretariat for ILAN to strengthen the Institute’s administrative capacity.

Responding, the Commissioner for Insurance, Mr. Omosehin, welcomed the ILAN delegation and expressed appreciation for the visit. He assured them of the Commission’s commitment to supporting every segment of the insurance industry as part of the broader transformation agenda. The CFI emphasized the need for professionalism and ethical conduct in the discharge of loss adjusting responsibilities, noting that adjusters play a critical role as the bridge between policyholders’ expectations and their satisfaction.

The meeting also underscored the importance of strict adherence to the Code of Conduct and Professional Ethics for Loss Adjusters to enhance the credibility and quality of practice within the profession.

OPENING REMARKS BY THE COMMISSIONER FOR INSURANCE AT THE 2025 STAKEHOLDERS RETREAT OF THE HOUSE COMMITTEE ON INSURANCE AND ACTUARIAL MATTERS WITH THE THEME: “NAVIGATING THE NEW ERA OF INSURANCE REGULATION – UNDERSTANDING THE NIGERIAN INSURANCE INDUSTRY REFORM ACT 2025”.

Protocol

It is with great honour and a deep sense of responsibility that I welcome you all to this strategic retreat convened by the House of Representatives Committee on Insurance and Actuarial Matters in collaboration with the National Insurance Commission. We are especially privileged to hold this retreat in Maiduguri, Borno State, a region that continues to demonstrate resilience and renewal under the visionary leadership of His Excellency, Governor Babagana Umara Zulum, the Executive Governor of Borno State.

Your Excellency, we commend your administration’s bold strides in rebuilding infrastructure, expanding access to healthcare, and promoting inclusive development. The insurance sector stands ready to partner with your government in deepening risk protection for public assets and supporting agricultural resilience.

I must also express my sincere appreciation to Hon. Ahmadu Usman Jaha, Chairman of the House Committee on Insurance and Actuarial Matters. Hon. Jaha, your leadership has been instrumental in advancing the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and fostering a culture of stakeholder engagement and legislative foresight.

Insurance-Agriculture Cooperation: A Strategic Imperative

Agriculture remains the backbone of Nigeria’s rural economy and a vital pillar of food security. Yet, it is also one of the most vulnerable sectors, exposed to climate shocks, pest outbreaks, and market volatility. Insurance offers a powerful tool to de-risk agriculture and empower our farmers.

Recent impact statistics show:

-Over 1.47 million smallholder farmers have been covered under NIRSAL’s agricultural insurance schemes, with a target of 3.6 million by 2026.
-In Q2 2025, 250,000 farmers were insured across eight states under federal initiatives. -Statistics has it that in North Central Nigeria, insured rice farmers recorded 11% higher productivity than their uninsured peers, averaging 20 bags/hectare compared to 18 bags/hectare.

Successful programs include:

-Kaduna ginger farmers received payouts under the NAGS-AP scheme after suffering over 90% crop loss.
-Livestock and encroachment insurance in Sokoto, Bauchi, Adamawa, and Plateau States are reducing farmer-herder conflicts.

Under NIIRA 2025, NAICOM aims to:

-Expand index-based and parametric insurance for crops and livestock
-Promote bundled insurance products with inputs and credits
-Create a platform of collaboration for operators to Partner with tech firms and agribusinesses to scale digital insurance delivery
-Work with state governments to embed insurance into agricultural extension services

The theme of this retreat, “Navigating the New Era of Insurance Regulation:

Understanding NIIRA 2025”, reflects our collective commitment to building a modern, inclusive, and resilient insurance ecosystem. NIIRA 2025 consolidates decades of fragmented legislation into a coherent framework that empowers regulators, protects consumers, and fosters innovation.

This retreat offers a unique opportunity to:

-Deepen understanding of NIIRA 2025’s provisions and implications

-Strengthen collaboration between legislators, regulators, and industry players

-Explore strategic partnerships with state governments in providing appropriate insurance cover for Govt Asset, agriculture, and infrastructure

Your Excellencies, NIIRA 2025 is not just about regulation; it is about reimagining the role of insurance in our economy. The new legislation sets out to:
-Modernise our frameworks in line with international standards.
-Safeguards consumers via stronger disclosure, claim handling, and a Consumer Protection Fund.
-Promote ethical conduct, transparency, and sound market practices through stronger governance and oversight.
-Strengthened compulsory insurance to protect lives and property.
-Broaden financial inclusion with microinsurance and Takaful.
-Strengthened the financial health of insurance companies.
-Push digitalisation for greater access, transparency, and trust.

In summary, this Act is a chance to shift insurance from being a niche service to being a pillar of Nigeria’s economic stability.

Breaking Down the Key Areas
1. Compulsory Insurance Enforcement

The gaps in compliance with the compulsory classes, such as Motor Third Party, Builders’ Liability, Group Life, Health, represents inadequate protection of citizenry and loss of revenue. NIIRA 2025 significantly strengthens the enforcement framework for Nigeria's compulsory insurance categories. The Act introduces robust enforcement provisions, including clearer penalties for non-compliance and mechanisms for verification.A key addition is the mandatory insurance coverage for government assets and employees, ensuring better protection of public resources and aiming to increase premium volume while setting a compliance framework. Legislative support is nevertheless essential in ensuring compliance by States and Agencies.

2. Agriculture and Climate RiskNigeria loses billions annually to floods, drought, and other climate shocks. Yet only a few of our farmers have insurance. With your support in budget appropriations and subsidies, we can de-risk agriculture sector, protect livelihoods, and strengthen food security. Disasters and accidents shouldn’t always drain public funds. With insurance, government can redirect resources to pressing priorities, hence insurance reduces fiscal burden.

3. Infrastructure and Public AssetsEvery year, billions are spent on roads, housing, schools, and hospitals. Without insurance, one disaster can erase years of investment. With enforcement, government’s emergency expenditures can drop by up to 40%, freeing resources for other priorities like education and health. Insurance is a source of long-term capital. With stronger premiums, insurers can fund infrastructure bonds, housing, and industry.

4. Financial Soundness of InsurersThe Act introduces stricter capital and solvency rules which is geared towards strengthening insurers, mobilising funds/investments in infrastructure and industrial growth, and increasing insurance pe*******on in Nigeria.

5. Digitalisation and Consumer ProtectionTrust has been a challenge in our market. Delayed claims discourage participation. By mandating digital processes, the Act introduces transparency and efficiency. Digital distribution is a framework for mobile and digital solutions to eliminate geographical barriers and reduce transaction costs. But to succeed, there is need for collaboration and alignments with laws on data protection and cybersecurity, and many others.

The Act also establishes a comprehensive consumer protection framework, prominently featuring Policyholder Protection Fund. This fund acts as a vital safety net, ensuring that valid claims are honoured even if an insurer faces insolvency, thereby protecting policyholders from financial loss.

6. We are also optimistic that the new legislation will bring millions of Nigerians into the financial safety net through its financial Inclusion provisions.
-Microinsurance offers a Simplified, affordable products for low-income individuals with flexible payments and reduced documentation to increase accessibility.
-Takaful is a Shariah-compliant alternatives based on mutual protection, expanding access for religiously sensitive populations.

Why Legislative Support Matters

Honourable legislators, the law has been passed, but now the real work has only just started. For this Reform Act to succeed, we request that your committee respectfully:

1. Exercise oversight to ensure MDAs comply with compulsory insurance.
2. Provide budgetary support.
3. Drive awareness and advocacy in your constituencies.
4. Facilitate harmonization of state policies with federal frameworks.

Without your backing, compliance will remain weak, and the promise of this law may not be realised. Let us seize this moment to build a future where insurance is not just a policy document, but a promise of security, resilience, and shared prosperity. Let us align our efforts, legislative, regulatory, and operational, to ensure that NIIRA 2025 delivers on its transformative potential.

Closing

In closing, let me be clear: insurance is not just about premiums and claims. It is about protecting lives, preserving government resources, and building an economy that can withstand shocks.

NIIRA 2025 positions Nigeria's insurance sector for sustainable growth, enhanced consumer protection, and international competitiveness. We must therefore collectively commit to the successful realisation of the potentials and benefits of NIIRA 2025.

On behalf of NAICOM, I pledge our full commitment to this journey. Together, we can chart a course that positions Nigeria’s insurance industry as a cornerstone of our $1 trillion economic ambition.

Once again, I welcome you all to Maiduguri, and to what promises to be a retreat of substance, strategy, and shared vision. May our deliberations be fruitful, our partnerships enduring, and our outcomes impactful.

Thank you, and God bless the Federal Republic of Nigeria.

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