Key points
- NAICOM Chief Executive Olusegun Omosehin urged insurance operators to transition to customer-centric models to deepen sector penetration.
- Omosehin made the call on Monday in Lagos during the official opening ceremony of the 2026 Insurance Week.
- The regulator described claims settlement as the moment of truth, warning that delays undermine public confidence in the industry.
- Insurance companies were urged to simplify policy documentation and actively involve clients in the product development process.
- The newly enacted Nigerian Insurance Industry Reform Act 2025 will reinforce policyholder protection and improve governance frameworks.
Main Story
The National Insurance Commission has urged insurance operators to embrace customer-centred reforms to rebuild public trust and deepen insurance penetration in Nigeria.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, made the call at the opening ceremony of the 2026 Insurance Week in Lagos on Monday.
Omosehin, who was represented by the Deputy Commissioner for Insurance, Finance and Administration, Mr Ekerete Ola Gam-Ikon, emphasised the need for insurers to shift from product-driven strategies to solutions tailored to customers’ needs.
The report indicated that the regulatory commission intends to address the persistent public perception that insurers focus solely on selling rigid, existing products rather than designing practical financial solutions.
To counter this, Omosehin called for the simplification of complex policy documentation and communication so that insurance is no longer perceived as inaccessible.
He noted that the implementation of the Nigerian Insurance Industry Reform Act 2025 will provide the statutory framework required to enforce stricter policyholder protection, improve corporate governance, and support inclusive, sustainable market growth.
The Issues
- Moving away from long-standing, product-centric corporate structures requires insurance operators to invest heavily in modern customer feedback loops.
- Unnecessary ambiguities and processing delays during the claims resolution phase continue to damage the general public’s willingness to purchase policies.
- Complex terminology and legal jargon in traditional insurance contracts create a communication barrier that limits financial literacy among everyday consumers.
What’s Being Said
- “Insurers must deliberately transition from a product-centric approach to a customer-centric model,” NAICOM Chief Executive Olusegun Omosehin asserted.
- Omosehin added that “this entails actively involving clients in the product development process, seeking their input, understanding their expectations and designing solutions that align with their real-life needs.”
- He noted that “when clients are actively engaged in product design, several positive outcomes emerge. Products become more relevant and accessible, pricing structures become more acceptable and, most importantly, trust and ownership are significantly enhanced”.
- The regulator described claims settlement as the “moment of truth” in insurance, warning that delays and ambiguities in claims processes undermine confidence in the industry.
- “Insurers must ensure that policyholders are well-informed about claims procedures, from documentation requirements to timelines and expectations,” he emphasized regarding operational transparency.
What’s Next
- Insurance underwriters are expected to review their product development frameworks to include consumer focus groups and direct market input.
- NAICOM will rollout supervisory guidelines to track compliance with the consumer protection provisions of the Insurance Industry Reform Act 2025.
- Operator associations will initiate industry-wide communication campaigns aimed at simplifying policy documentation and standardizing claims filing procedures.
Bottom Line
NAICOM’s directive at Insurance Week underscores a regulatory shift toward enforcing consumer transparency and prompt claims payment, using the legislative backing of the 2025 Reform Act to transform insurance from an untrusted product into an accessible solution.
