The Nigerian insurance industry has entered a historic new phase with the coming of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which is expected to revolutionise the sector, deepen penetration, build consumer trust, expand market and increase contributions to the economy.
Signed into law on 30th July 2025 by President Bola Ahmed Tinubu, NIIRA is the most far-reaching reform of the sector in more than two decades. It repeals the Insurance Act of 2003 and other related laws, establishing a modern framework for regulation, supervision, and industry development.
Industry regulator, the National Insurance Commission (NAICOM), has already begun a comprehensive implementation programme aimed at transforming the industry through three central thrusts.
“Our strategic focus under NIIRA is anchored on three pillars- Reform, Rebuild, and Recapitalise,” said Olusegun Omosehin, commissioner for Insurance and chief executive officer of the National Insurance Commission (NAICOM).
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He said NAICOM is committed to modernising regulation and aligning with global standards, strengthening governance, solvency, and public trust, as well as enhancing financial capacity, fostering innovation, and expanding inclusion.
Speaking on the significance of the reform, Omosehin affirmed that the enactment of NIIRA 2025 marks a pivotal moment, a comprehensive blueprint to reposition the insurance sector as a key driver of economic growth and social protection.
According to him, the insurance sector must move “from the margins to the mainstream of economic planning,” supporting Nigeria’s development agenda through long-term capital mobilisation, risk mitigation, and financial security for households and businesses.
To drive market penetration, the Omosehin-led NAICOM has emphasised that trust is the foundation upon which the new era of insurance must be built.
“Trust is the bedrock of our industry, and without it, sustainable growth and lasting success are unattainable. As an industry, we must commit to transparency, integrity, and accountability, paying legitimate claims promptly, communicating clearly with policyholders, and ensuring fairness in every transaction.”
At the end of second quarter of 2025, Nigeria’s insurance industry gross written premium rose to a record high of N1.213 trillion, indicating a 49.3 percent growth rate compared to the same period in 2024, and a 57.8 percent quarter by quarter increase.
Total assets of the industry rose to N4.4 trillion in the second quarter, compared to the N2.3 trillion reported in the corresponding period of 2024, with breakdown showing N2.5 trillion in assets for Non-Life business, while the Life business stood at N1.9 trillion.
NIIRA implementation
NAICOM recently unveiled a regulatory roadmap, launching working groups to drive financial inclusion, digital transformation, and compulsory insurance enforcement under NIIRA 2025.
Omosehin stated, “This marks the beginning of a coordinated journey toward achieving a stronger, more transparent, and technology-driven insurance industry. NIIRA 2025 is not just a regulatory document, it is a blueprint for building an insurance sector that protects lives, businesses, and investments across Nigeria.”
He emphasised the importance of the implementation phase, noting that, “This strategy represents a shared responsibility to deliver results that will redefine the perception and impact of insurance in Nigeria.”
The Compulsory Insurance Working Group, chaired by Shola Tinubu, former managing director of SCIB Insurance, is mandated to strengthen the enforcement of all compulsory insurance schemes across the country, including Motor (Third Party), Builders’ Liability, Group Life, Professional Indemnity, and Public Buildings insurance. The goal is to ensure nationwide compliance, improve public awareness, and enhance policyholder protection through collaboration with federal and state enforcement agencies.
The Digitisation Working Group, headed by Adetola Adegbayi, former executive director at Leadway Assurance, is tasked with modernising the insurance regulatory ecosystem through innovative digital tools and platforms. Key objectives include enhancing transparency, improving data integrity and regulatory oversight, boosting operational efficiency, reducing processing time for licensing, claims, and renewals, and expanding access to insurance products through digital and mobile channels.
The Financial Inclusion Working Group, chaired by Yeside Oyetayo, former rector of the College of Insurance and Financial Management, is mandated to deepen insurance penetration, especially among underserved and low-income populations. Focus areas include expanding microinsurance and takaful outreach, collaborating with key financial inclusion stakeholders such as the Central Bank of Nigeria (CBN), development partners, and fintech firms, and implementing inclusive policies from NIIRA 2025 to ensure equitable access to risk protection.
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Minimum Capital Requirements (MCRs)
NIIRA introduced higher Minimum Capital Requirements (MCR) for insurance and reinsurance companies in Nigeria, giving them 31st July 2026 as deadline for compliance. It aims to increase the solvency of insurance companies, attract investment, and encourage domestic risk retention.
In the new requirement, life companies are required to shore up their MCR to N10 billion, while general companies are to raise N15 billion.
Composite companies are to rause N25 billion, with reinsurance firms mandated to pull N35 billion.
Market Expansion
To increase uptake of insurance, NAICOM recently issued guidelines enabling web aggregators to drive insurance product distribution in Nigeria. Mp-Platform Ltd, Insurance Hub Nig. Ltd, and P2Vest Tech. Ltd have secured approvals, CBI Insuretech Limited and WRAPA Insuretech Limited have applied for licences.
