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The Nigerian Insurers Association (NIA) has urged insurance companies to translate the N1.079 trillion raised through the industry’s recapitalisation exercise into faster claims settlement, stronger underwriting capacity and improved customer service.
The association warned that stronger balance sheets would have limited value if insurers failed to meet their contractual obligations, as policyholders increasingly demand accountability and better value for their premiums.
NIA Chairman Ebelechukwu Nwachukwu, who is also Managing Director and Chief Executive of Rex Insurance Limited, said the industry must move beyond celebrating the capital-raising exercise and demonstrate measurable improvements in service delivery, innovation and insurance penetration.
She made the remarks at an industry event themed “From Capital to Capacity: Driving Growth, Innovation, and Trust in Nigerian Insurance Sector.”
NIA says recapitalisation must deliver tangible results
Nwachukwu described the recapitalisation exercise as an opportunity for insurers to expand their capacity and strengthen their ability to underwrite larger risks. However, she stressed that the long-term value of the exercise would depend on how effectively companies deploy 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 improved capital positions.
According to Nwachukwu, the industry has spent decades strengthening its capital base, but its immediate priority must be to convert that financial capacity into practical benefits for policyholders.
She said the success of recapitalisation should be reflected in businesses being able to secure insurance for larger risks within Nigeria, families receiving prompt and fair claims payments, and more Nigerians recognising insurance as 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.
Stronger capital must support disciplined underwriting
The NIA chairman cautioned that increased capital must be accompanied by disciplined risk assessment and appropriate pricing to prevent insurers from pursuing expansion at the expense of financial stability.
While a stronger capital base can improve an insurer’s capacity to absorb losses and underwrite larger exposures, sustainable growth also depends on evaluating risks accurately and charging premiums that adequately reflect the obligations being assumed.
For the industry, the challenge is to use the additional financial resources to expand capacity without weakening underwriting discipline or creating pressure on future claims payments.
Nwachukwu’s comments highlight the importance of balancing growth ambitions with sound risk management, particularly as insurers seek to compete for larger corporate accounts and reach new customer segments.
Technology and insurtech partnerships can widen coverage
Nwachukwu also called for greater adoption of technology, digital distribution channels and partnerships with insurance technology companies to extend coverage to underserved communities and customer groups.
Digital channels and technology-enabled insurance solutions could help companies reach customers who remain outside traditional distribution networks, while supporting more accessible product offerings and service delivery.
Nigeria’s low insurance penetration, she said, presents an opportunity for operators to develop products that respond more effectively to the needs of individuals and businesses that remain underserved by the insurance market.
For insurers, expanding access will require more than additional capital. Products must also reflect customers’ needs, while distribution and service models must make insurance easier to understand, purchase and use.
Claims settlement remains central to public trust
Nwachukwu identified public confidence as a critical factor in the industry’s ability to expand insurance adoption. She warned that delays in claims settlement and disputes over contractual obligations could weaken trust and discourage potential customers from purchasing insurance.
Claims performance is particularly important because policyholders often judge an insurer by how it responds when a covered loss occurs. Consistent and fair settlement practices can help demonstrate the value of insurance and encourage wider participation in the market.
“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.
Her remarks reinforce the need for insurers to align their financial strength with reliable service delivery, clear communication and adherence to policy terms.
NIA pledges support for industry standards
Nwachukwu said the NIA would continue supporting member companies through regulatory engagement, advocacy and capacity-building initiatives aimed at improving claims settlement, professional standards and market conduct.
The association’s commitment comes as the industry faces expectations that recapitalisation will lead to stronger underwriting capacity and better outcomes for customers.
The N1.079 trillion raised represents a significant financial milestone for Nigeria’s insurance sector, but its broader impact will depend on how insurers use the capital to improve their operations and expand access to protection.
Ultimately, the industry’s progress will be measured not only by the strength of insurers’ balance sheets, but also by their ability to honour claims, manage risks responsibly, adopt useful technologies and build lasting public confidence.
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