The Nigerian Insurance Industry Reform Act (NIIRA 2025) is ushering in a renaissance in the sector, reshaping market behavior as tighter regulation, stronger capital requirements and renewed policyholder confidence drive expansion amid increased market discipline.
The overhaul aims to deepen the size of Nigeria's N4.4 trillion insurance market, which has long lagged regional competitors, while restoring credibility after years of weak enforcement and undercapitalization.
Early signs of consolidation, product innovation and foreign interest suggest that reforms could re-establish insurance as a key pillar of Nigeria's financial system.
The insurance industry recorded gross written premiums of N1.213 trillion at the end of the second quarter (Q2) 2025, representing a growth rate of 49.3 per cent compared to the same period in 2024 and 57.8 per cent quarter-on-quarter growth, while the total assets of the industry increased to N4.4 trillion, compared to N2.3 trillion reported in 2024.
Under the leadership of Insurance Commissioner/CEO, National Insurance Commission (NAICOM), Olusegun Omoshin, the industry is taking a new step in market discipline, thereby providing greater protection to policyholders and consumers.
Omoshin and his team have focused on enforcing strict regulatory standards, including capital adequacy and solvency requirements, while cracking down on misconduct to restore market discipline and transparency.
“We have seen an improvement in market discipline and this is important for increasing policyholder confidence and investor interest in our industry,” said Eddie Efekoha, group managing director of Consolidated Hallmark Holdings.
“Market discipline is also improving. Operators must follow regulations; fines and sanctions are in place 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 said, “We want an industry that prospers and protects commercial activity. Anyone involved in the industry must recognize the need for integrity and the reputation we have earned. That reputation is valuable and must be protected.”
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President of the Nigerian Association of Insurers (NIA), Kunle Ahmed, said the past year was transformational, marked by initiatives that deepened the market, enhanced public confidence and strengthened stakeholder engagement.
“Key achievements include the launch of the NIA Innovation Lab, sustained advocacy on Compulsory Insurance, continued engagement with our regulator to improve the circulars issued, and extensive engagement with agencies such as the National Assembly, EFCC and partner unions to promote 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 strong framework for insurance penetration, governance and sustainable development.
As 2026 begins, he said the priority is effective implementation through collaboration between companies, regulators and stakeholders, noting that the NIA has promised continued support through advocacy, guidance, capacity-building, and plans to set up a recapitalization help desk to assist members during the transition.
“With collaboration, transparency and shared responsibility, I am confident that we will consolidate the gains of 2025 and usher in a new era of development and public trust,” Ahmed said.
Going into 2026, Omosehin said the reform agenda is aimed at transforming Nigeria's insurance industry through strict enforcement of NIRA 2025, and at the center of this agenda is the non-negotiable recapitalization deadline of July 30, 2026, which he said will not be extended.
According to the Commissioner, NAICOM is currently verifying insurers' claims of compliance with the new capital requirements and will confirm compliance only after a thorough assessment in line with the NIIRA provisions.
Beyond the recapitalization, 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, particularly third-party motor insurance, while working closely with other enforcement agencies to promote nationwide compliance.
Innovation and sustainability is 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 the development of the market, Efekoha continued, saying NAICOM deserves credit for its efforts in developing the market as it increases overall capacity and benefits everyone proportionately.
“This year, the regulator has made progress in developing the market, beginning with government initiatives that are permeating the economy. When infrastructure projects are rolled out effectively, employment, commerce and tourism all benefit, as seen in states like Akwa Ibom, which has implemented coherent plans including 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) has, by the end of 2025, called for a new leadership capacity in the insurance industry to maximize the huge benefits provided by NIIRA 2025.
Speaking during the 22nd Annual General Meeting, Olufemi Oduwole, Chairman of NCRIB-LAC, said NIIRA 2025 has given the insurance industry the necessary impetus to break the ice ceiling by harnessing the potential for growth and sustainability.
Under NIIRA 22226025, the 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.
