UNDP to Boost Nigeria’s Insurance Sector
The United Nations Development Program (UNDP) has announced its commitment to enhance Nigeria’s insurance sector through various initiatives aimed at strengthening the industry. Key efforts include expanding the Lagos flood risk insurance model and revitalizing the National Disaster Insurance Scheme, in collaboration with the National Insurance Commission (NAICOM) and relevant disaster management entities such as the National Emergency Management Agency (NEMA).
Strengthening Systemic Capacities
Alongside these initiatives, the UNDP will focus on bolstering systemic capacities, particularly in the area of actuarial development. This initiative aims to empower insurance companies to attract domestic capital for sustainable investments, which is crucial for the industry’s growth and stability.
Commitment to Reforms
During a courtesy visit to Health Secretary Ayo Olusegun Omosehin in Abuja, UNDP Regional Specialist David Moller expressed gratitude for the leadership shown by the Committee. He reaffirmed UNDP’s dedication to supporting ongoing reforms within Nigeria’s insurance sector, emphasizing insights derived from past UNDP-supported initiatives.
Welcoming Collaboration in the Insurance Industry
In response, Mr. Omosehin acknowledged the contributions of the UNDP and expressed appreciation for the agency’s continual support for Nigeria’s insurance landscape. He detailed five strategic pillars that underpin NAICOM’s reform agenda, highlighting a commitment to transparent recapitalization and an innovation-driven environment to enhance insurance penetration in the country.
Legal Framework for Consumer Protection
Mr. Omosehin pointed out that the recently enacted Nigeria Insurance Industrial Reform Act of 2025 (NIIRA) provides a robust legal foundation designed to bolster consumer protection while enhancing regulatory capacities. This act also aims to improve the financial health of firms and foster both innovation and sustainability in the market.
Recapitalization Process for Financial Stability
To strengthen the financial stability of insurance institutions, the ongoing industry recapitalization is set to conclude its first phase on July 31, 2026. To support operators during this transition, NAICOM has formed a dedicated Recapitalization Committee to guide the process effectively.
Institutionalizing Sustainable Practices
NAICOM has also committed to embedding environmental, social, and governance (ESG) principles in the insurance sector. This effort will be facilitated through the development of an internal NAICOM ESG Framework, building on extensive diagnostic work and toolkits created in partnership with organizations like FSD Africa and UNDP.
Collaboration for Market Stability
Both parties emphasized the urgent need to significantly expand actuarial capacity across the insurance industry. They proposed a range of coordinated initiatives, such as the GAIN program and strategic partnerships with actuarial service providers, to achieve this goal. The meeting highlighted a shared objective: deepening collaboration to expand insurance access, enhance market stability, and establish strategic priorities for scaling up climate and disaster risk solutions in Nigeria.
