Nigerian Insurance Industry Reform Act (NIIRA 2025) is triggering a renaissance in the sector, reshaping market behaviour as tighter regulation, stronger capital requirements and renewed policyholder confidence drive expansion amid rising market discipline.
The overhaul aims to deepen Nigeria’s N4.4 trillion insurance market size that has long lagged regional peers, while restoring credibility after years of weak enforcement and undercapitalisation.
Early signs of consolidation, product innovation and foreign interest suggest the reforms could reposition insurance as a key pillar of Nigeria’s financial system.
The insurance industry, at the end of second quarter (Q2) 2025 recorded a gross written premium 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, while total asset of the industry grew to N4.4 trillion, as against N2.3 trillion reported in 2024.
Under the leadership of Olusegun Omosehin, the commissioner for Insurance/CEO, National Insurance Commission (NAICOM), the industry is taking a new swipe in market discipline, giving more protection to policyholders and consumers.
Omosehin and his team have focused on enforcing stricter regulatory standards, including capital adequacy and solvency requirements, while cracking down on malpractices to restore market discipline and transparency.
“We have seen improvement in market discipline and that is critical in driving policyholder confidence, and investor interest in our industry,” said Eddie Efekoha, group managing director, Consolidated Hallmark Holdings.
“Market discipline is also improving. Operators must follow rules; fines and sanctions exist to ensure compliance. This discipline protects the integrity of the industry. Market expansion has also benefited from regulatory support, creating relative peace and smooth succession within the sector.”
Efekoha added, “We want an industry that prospers and safeguards commercial activity. Anyone engaging with the industry should recognise the need for integrity and the reputation we have earned. That reputation is valuable and must be preserved.”
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Kunle Ahmed, chairman, Nigerian Insurers Association (NIA), said the past year was transformative, marked by initiatives that deepened the market, boosted public confidence, and strengthened stakeholder engagement.
“Key achievements included the launch of the NIA Innovation Lab, sustained advocacy on compulsory insurances, constant engagements with our regulator leading to improvements in issued circulars, and broader engagements with agencies like the National Assembly, EFCC, and sister associations to foster a more conducive business environment.”
Ahmed, who is also the managing director/CEO AXA Mansard, said the Nigeria Insurance Industry Reform Act (NIIRA) signed into law in 2025 has created a stronger framework for insurance penetration, governance, and sustainable growth.
As 2026 begins, he said the priority is effective implementation through collaboration among companies, regulators, and stakeholders, noting that NIA has pledged continued support via advocacy, guidance, capacity-building, and plans to establish a recapitalisation help desk to assist members during the transition.
“With cooperation, transparency, and shared responsibility, I am confident we will consolidate the gains of 2025 and usher in a new era of growth and public trust,” Ahmed stated.
Going into 2026, Omosehin said the reform agenda is aimed at transforming Nigeria’s insurance industry through strict enforcement of NIIRA 2025, and central to this agenda is the non-negotiable recapitalisation deadline of July 30, 2026, which he said would not be extended.
According to the commissioner, NAICOM is currently verifying insurers’ claims of compliance with the new capital requirements and will only confirm compliance after thorough evaluation in line with NIIRA provisions.
Beyond recapitalisation, NAICOM plans to strengthen regulatory oversight by enhancing supervisory capacity, improving data management, and upgrading technical skills to ensure effective regulation of insurers and intermediaries.
The commission will also intensify enforcement of compulsory insurance policies, especially third-party motor insurance, working closely with other enforcement agencies to boost compliance nationwide.
Innovation and sustainability form another pillar of the 2026 roadmap. NAICOM intends to promote the adoption of technology through Insurtech solutions and digital marketplaces, strengthen solvency control systems, and introduce a confidential whistle-blower mechanism to improve transparency and accountability within the industry.
Looking at market development, Efekoha, continuing, stated that NAICOM deserves credit for efforts to develop the market as it increases overall capacity and benefits everyone proportionally.
“This year, the regulator has made strides in developing the market, starting with government initiatives that trickle down into the economy. When infrastructure projects are undertaken effectively, employment, commerce, and tourism all benefit, as seen in states like Akwa Ibom, which implemented coherent plans including at hotels, airports, roads, security, and recreational facilities. This creates a ripple effect, boosting businesses and local economies,” he said.
Meanwhile, the Lagos chapter of the Nigerian Council of Registered Insurance Brokers (NCRIB – LAC), at the close of 2025, called for a new leadership competence across the insurance industry to maximise the enormous benefits provided by NIIRA 2025.
Olufemi Oduwole, chairman of NCRIB-LAC, speaking during the 22nd Annual General Meeting, said NIIRA 2025 had given the required leeway for the insurance industry to break the ice ceiling by harnessing potential for growth and sustainability.
Under the NIIRA 22226025, new minimum capital requirement has been set at N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite operators, and N35 billion for reinsurers, all to be met by July 30, 2026.
