Nigeria’s insurance industry must translate the N1.079tn raised through its recapitalisation exercise into faster claims settlement, stronger underwriting capacity and improved customer service, the Nigerian Insurers Association has said.
The association warned that stronger balance sheets would mean little if insurers failed to honour contractual obligations, as policyholders increasingly demand accountability and better value for their premiums.
NIA Chairman, Ebelechukwu Nwachukwu, said the industry must move beyond celebrating the capital-raising exercise to demonstrate tangible improvements in service delivery, innovation and insurance penetration.
Nwachukwu, who is also Managing Director and Chief Executive of Rex Insurance Limited, spoke at an industry event themed ‘From Capital to Capacity: Driving Growth, Innovation, and Trust in Nigerian Insurance Sector’.
She said the recapitalisation exercise had created an opportunity for insurers to expand their capacity, but stressed that its success would depend on how effectively operators deployed the additional capital.
“We must resist the temptation to celebrate the recapitalisation as an end. The real test lies in translating stronger balance sheets into underwriting capacity, innovation, better claims service, and wider penetration,” she said.
She urged industry leaders to maintain sound underwriting standards, prudent risk management, customer-focused service and sustainable growth, warning that complacency could undermine the benefits of the exercise.
According to her, the industry has spent decades strengthening its capital base, but the current priority is to ensure that the improved financial position translates into measurable benefits for customers.
Nwachukwu said the ultimate test would be whether businesses could obtain insurance for larger risks locally, families could secure prompt and fair claims payments, and more Nigerians would consider insurance relevant to their everyday lives.
“The value of recapitalisation will be judged by what it delivers to policyholders, not by what it says on a balance sheet,” she said.
The NIA chairman cautioned that increased capital must be matched by disciplined risk assessment and adequate pricing to prevent insurers from pursuing growth at the expense of financial stability.
She also called for greater use of technology, digital distribution channels and insurtech partnerships to extend coverage to underserved communities and customer segments.
Nigeria’s low insurance penetration, she said, presents an opportunity for operators to develop products that respond to the needs of individuals and businesses that remain outside the insurance market.
Nwachukwu described public confidence as central to the industry’s growth, noting that delays in claims settlement and disputes over contractual obligations could weaken trust and discourage potential customers.
“Trust is earned one claim at a time, and it is the surest route to deeper penetration. If we get this right, growth will follow,” she said.
She pledged that the NIA would support member companies through regulatory engagement, advocacy and capacity-building initiatives aimed at improving claims settlement, professional standards and market conduct.