As the nation’s insurance industry deepens on-going reforms under the Insurance Industry Reform Act (NIIRA) 2025, one of the key partners in the process, Ernst & Young (EY) is seeing a stronger sector that will have capacity to underwrite big-ticket risks, offer protection for industries as well as support economic growth.
EY is the professional services network of Ernst & Young, one of the “Big Four” firms along with Deloitte, KPMG, and PwC that have been engaged by the National Insurance Commission (NAICOM) to carry our capital verification of insurance companies during the on-going recapitalisation exercise.
Ben Afudego, partner, Consulting Leader West Africa at EY welcoming participants at EY Insurance Summit 2025 said NIIRA is a big catalyst we must throw our weight behind to drive the growth of the insurance industry.
Afudego said ‘If we are able to bring in more capital, it will help the industry underwrite big risks, put systems in place and recruit quality staff to shape the future and drive the growth of the insurance’.
Olusegun Ayo Omosehin, commissioner for Insurance/CEO, National Insurance Commission (NAICOM) speaking at the forum underscored the critical role of insurance in Nigeria’s ambition to build a $1 trillion economy by 2030.
Omosehin represented by Usman Jankara, deputy commissioner for Insurance described NIIRA 2025 as a landmark legislation designed to strengthen financial soundness, enhance policyholder protection, and align the sector with global regulatory standards.
He emphasised that the Act introduces a forward-looking framework that will secure long-term stability, foster innovation, and expand the industry’s contribution to national development.
Since the passage of the Act, NAICOM has undertaken what it calls decisive steps to ensure clarity and orderly implementation.
These include new guidelines on Minimum Capital Requirements (MCR), mandatory recapitalisation plans submitted by all insurers and reinsurers, and the establishment of a dedicated Recapitalisation Committee to monitor compliance.
Meanwhile, panellists at the forum who are experts from EY highlighted growth pedals for the insurance industry, raising critical issues including that, raising capital alone will not transform the industry; it is what we do with it, pointing importance of technology, people, and innovation that builds stronger companies.
They also noted that Nigeria’s growth will not come from top risks, but that true penetration lies at the bottom of the pyramid where millions still lack insurance.
They spoke on efficient taxation planning, pointing that as companies restructure under NIRA, tax efficient planning is essential, pointing that global tax rules now shape how every transaction must be structured.
“The future of insurance penetration is digital; micro insurance powered by mobile platforms and insurtechs will drive real adoption, they also noted.
Jankara continuing said, to reinforce transparency and investor confidence, NAICOM has also partnered with the Big Four audit firms including EY, KPMG, PwC and Delloite for independent verification of insurers’ capital bases, with recapitalisation funds now required to be lodged in escrow accounts with the Central Bank of Nigeria.
He said the commission has issued guidelines on reinsurance operations, while draft regulations on operator registration, renewal requirements, and participation of foreign health insurance providers have been circulated for industry input. Additional rules covering product development, suitability and fit-and-proper criteria, claims management, Takaful, and microinsurance are underway.
Jankara disclosed that industry response to the reforms has been “encouraging,” with several insurers preparing for capital verification and board-level approvals already in place for mergers, fresh capital injections, and operational restructuring.
He acknowledged persistent challenges, including complex merger-and-acquisition processes, macroeconomic volatility affecting capital raising, and capacity gaps in underwriting and risk management.
According to him, NAICOM’s strategic focus goes beyond compliance. The long-term goal, he said, is to build a resilient and globally competitive industry powered by digital transformation, Environmental, Social and Governance, ESG-aligned investment practices, deeper participation in the African Continental Free Trade Area (AfCFTA), and sophisticated use of data and analytics.
These, he noted, are critical to managing emerging risks such as climate shocks, cybersecurity incidents, and public-health crises.
NAICOM also outlined its plan to transition the industry to a full Risk-Based Capital (RBC) regime immediately after completion of the MCR verification and licensing exercise, stating that the RBC framework and toolkit, already nearing finalisation, will align capital requirements with the actual risk profile of each institution, encouraging prudent risk-taking and improved governance.
The regulator further highlighted the rising importance of actuarial capacity in the wake of IFRS 17 implementation, describing it as essential for pricing compulsory insurance, valuing liabilities, supporting RBC computations, and enhancing regulatory data analytics. NAICOM is finalising arrangements to engage an actuary to strengthen these functions and help build industry-wide expertise.
The Commission laid out clear expectations for operators, stating that insurers and reinsurers must comply fully with capital timelines, submit monthly progress reports, strengthen risk management, invest in technology, and uphold prompt claims settlement.
