By Sola Alabadan

For paying just paid $170,000 (N255 million) as the premium to insure the risk, a consortium of insurance companies in Nigeria paid claims of $55 million (about N83 billion) to Britannia-U Nigerian Limited, for the fire incident that affected the company.

This is contrary to the wrong perception among the other people that the Nigerian insurance industry has not been paying claims.

The company was paid this claim for the massive fire outbreak that razed the 4,000 barrels of crude oil per day capacity Britannia-U1 FPSO operated by Nigerian independent producer, Britannia-U Nigeria Limited, offshore Forcados in Delta State.

the Commissioner for Insurance and CEO, National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, who disclosed this on Friday at the seminar organised by NAICOM for insurance journalists in Abeokuta, applauded the insurance operators for living up to expectation and paying the claim prompt settlement.

Omosehin,who was visibly excited by the industry’s ability to pay $55 million (N83 billion) claims to Britannia-U Nigeria Limited, stated that even the insured did not believe that the industry will have the capacity to pay the claim hence the reason why the case was reported to the National Assembly.

“Nigerian insurers have been paying claims and one major one is the Britainnia-U Nigeria claim that was initially estimated at about $72 million which was subsequently and finally adjusted for $55 million (N83 billion).

“Having adjusted a claim for N83 billion their perception, given what they heard, was, this people might not be able to pay. So they run to the National Assembly. The regulator was summoned and we were asked why are you people not paying. The reality is, there was no need for legislative intervention, and the claim was clearly discharged.

“The provision of the law with respect to timeline for settlement was 90 days because NIIRA had not been assented at that time. So the industry had 90 days and my explanation to the House was, calm down, these guys did not breach any provision, why do you want to descend on them? But, of course, I realized the need for the regulator to step in. So, we wrote to our entities and we gave them a timeline and immediately, the claim was settled.

“Honestly, I must tell you, I have never been proud of this market until that time. I confirmed to you the market has paid the N83 billion claim in full.

“The interesting part is that the premium for this risk was $170,000. The painful part of it is that the payment of this claim has not been publicized. Those are the things I want to see published.

NAICOM boss emphasized the need for industry players to publicize claims paid to change the negative perception by the public about the sector. “We cannot continue as a sector to keep quiet. Billions are being paid on an annual basis, yet people are saying insurance does not exist in Nigeria because they have access to the radio airwaves and those ones will go viral but the billions insurance companies are paying on an annual basis are not publicized.”

The Commissioner emphasised that in appreciation of the fact that insurance is a promise of protection, and its impact must be felt in the society, the promp payment of the claim is a proof that the industry is responsive and reliable when it comes to valid claims.

‎The Managing Director/Chief Executive Officer, Arthur Stevens Asset Management Limited, Mr. Olatunde Amolegbe, has tasked operators in the insurance and pension sectors to come up with strategies that will bring the full informal sector under insurance and pension coverage.
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‎Amolegbe, who gave this charge at the 10th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos recently, with the theme “Strengthening Pension and Insurance Framework for Better Economy” noted that the informal sector constitute about 70 million Nigerian working population.
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‎He identified the two sectors as key sub-sectors of the financial services industry of the economy that have capacity to accumulate long term investible funds.
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‎He however, regretted that both sectors for years, have been suffering from under development due to lack of public confidence and trust as well as poor awareness of the value of the sectors on the part of the public.
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‎Highlighting the underdeveloped nature of the two sectors, Amolegbe said pension and insurance coverage remained low, observing that only 26.3 percent of Nigerian workers had access to pension plan and health Insurance in 2023 largely due to the high number of informal sector workers in the country.
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‎“Approximately 92 percent of Nigeria’s employed population works in the informal sector, voluntary Micro pension scheme adoption has been low as of December 2024. Micro pension registration was barely 172.936 six years after the introduction of the scheme, for the inclusion of the informal sector”.
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‎On insurance performance he said “Nigeria’s insurance penetration remains largely low at less than 1.0 percent compared to South Africa ‘s 11.54 percent, Namibia’s 7.41 percent Morocco’s 4.10 percent, Kenya’s 2.25 percent and the global average of 6.8 percent,” he observed.
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‎To address the problem, he said the operators’ first step towards capturing the informal sector into insurance and pension fold was to rebuild their confidence and trust towards the sector.
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‎He said this was necessary because without regaining their confidence they could not be captured into pension and insurance nets because they would not want to put their money where they could not easily access it.
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‎He also urged operators of the two sectors to device simple and different system of enrolling the informal sector operators into the system using modern technology.
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‎He said operators of pension sector should begin to think how to establish micro PFAs and operate such firms in areas where micro people live.
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‎He urged insurance operators to use the opportunity of publicity created by the NIIRA 2025 to promote financial literacy among young Nigerians and make people have feelings for savings through insurance and pensions.
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‎Highlighting statistics on the performance of the two sectors between 2020 and 2024 Amolegbe said: “The pension and insurance sectors have recorded substantial growth, positioning them as critical pillars for economic stability and capital market deepening. Total pension assets reached over ₦23 trillion in 2025, equivalent to approximately 8.6 percent of GDP. Between 2020 and 2024, public sector contributions rose by 71.7 percent to ₦5.89 trillion, while private sector contributions grew by 65.7 percent to ₦5.42 trillion. In the fourth quarter of 2024 alone, contributions totaled ₦342.23 billion, with total Assets under Management standing at ₦22.51 trillion. Retirement Savings Account registrations rose by 14.8 percent over five years to 10.58 million accounts, and the Micro Pension Plan attracted ₦1.06 billion in cumulative contributions, highlighting the untapped potential of the informal sector”, he stated.
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‎He noted that the insurance industry achieved a 56 percent increase in gross written premiums in 2024, reaching ₦1.562 trillion, with the non-life segment accounting for ₦1.1 trillion and the life segment ₦470 billion. Industry assets rose by 46.1 percent to ₦3.9 trillion, while market capitalisation climbed 41 percent to ₦1.2 trillion. Net claims paid totaled ₦622 billion, with growth driven by fire, oil, gas, and group life products. He however noted that penetration remained below 1 percent far behind regional peers such as South Africa, Namibia, Morocco, and Kenya. He highlighted benefits of pension as driving long term investment, reducing poverty level among the elderly, promoting social stability and reducing dependency on family and government.
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‎He also highlighted insurance benefits as mitigating financial risks, and enabling businesses to invest and grow with confidence, promoting economic stability by compensating losses from unforeseen events and attracts foreign investment by offering risk coverage, boosting capital inflows among other benefits.

The Insurance Meets Tech (IMT) 4.0 Conference held recently in Lagos, themed “Innovating for the New Trybe” and highlighted the role of technology in transforming the Nigerian insurance sector.
Discussions at the conference also centred, among other things, on how to bridge traditional insurance structures with emerging, technology-driven solutions, emphasising digital adoption, innovation, and client-centred experiences.    
Leading an Executive Dialogue to discuss the Nigeria Insurance Industry Reform Act (NIIRA) 2025, recently signed into law by President Bola Ahmed Tinubu, was the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, who was represented at the event by the Deputy Commissioner for Insurance (Finance & Administration), Mr Ekerete Ola Gam-Ikon.
Omosehin stated that the NIIRA 2025, signed into law in July 2025, will foster economic growth by transforming the sector through increased capital, stronger policyholder protection via a Policyholder Protection Fund, digitalisation, microinsurance promotion, and alignment with global best practices.
“The Act is a warm piece of legislation that provides the blueprint to reset the industry”, he said. “This Act bridges the gap between what family and friends traditionally provide and what insurance should guarantee. Nigerians can now be confident that when something goes wrong, insurance will deliver,” he explained.
Omosehin highlighted that NIIRA’s recapitalisation will increase insurers’ capacity to handle risks and retain local businesses, contributing to the nation’s vision of a one trillion dollar economy.
The Chairman, Nigerian Insurers Association (NIA), Mr. Kunle Ahmed, who is also the MD/CEO of AXA Mansard Insurance Plc, said, “NIIRA 2025 represents a bold step toward strengthening the regulatory framework, enhancing public trust, improving market penetration, and modernising operations within the industry. It reflects the Federal Government’s commitment to deepening financial inclusion and ensuring that insurance becomes a robust pillar in Nigeria’s economic framework, in line with the President’s vision for achieving a $1 trillion economy by 2030.
“This is not just a legislative victory; it is a shared mission. NIA stands ready to champion a more resilient and customer-centric insurance sector that contributes meaningfully to national development.”
In her contribution to the discourse on NIIRA 2025, the President of the Chartered Insurance Institute of Nigeria (CIIN), Mrs Yetunde Ilori, said, “The insurance industry is set for unprecedented transformation following the signing of the Act.
“It introduced critical measures such as stringent capital requirements to ensure the financial soundness of operators, enforcement of compulsory insurance policies to enhance consumer protection, digitisation of the insurance market to improve access and efficiency, zero tolerance for delays in claims settlement, creation of dedicated policyholder protection funds, especially in cases of insolvency, and expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
The President of the Nigerian Council of Registered Insurance Brokers, Prince Babatunde Oguntade, who was represented at the conference by Mr. Peter Offiong, Assistant General Manager at Scib Nigeria & Co. Ltd, while stressing the need for immediate implementation of the Act, highlighted NIIRA’s provisions on compulsory insurance, emphasising that digital platforms and collaboration with state agencies will support enforcement.
He emphasised that brokers remain central to the ecosystem. “Brokers will evolve into digitally empowered advisers who offer customised, transparent services. The Act safeguards their relevance while ensuring consumer adoption of compulsory insurance,” he said.
Tunde Mimiko, Managing Director, SanlamAllianz Life Insurance, whose organisation was IMT 4.0’s Official Insurer, stressed the need for the industry to build systems that move beyond legacy bottlenecks, strengthen compliance, and foster greater trust with policyholders. He emphasised that such developments are crucial for safeguarding customers and positioning insurance as a key driver of financial security and sustainable growth in Nigeria.
The Managing Director, Cornerstone Insurance Plc, Stephen Alangbo, emphasised the company’s role as an Innovation Partner, focusing on digital transformation, customer-centric solutions, and the use of Insurtech to shape the future of inclusive coverage in Africa.
He highlighted Cornerstone’s commitment to leveraging technology and developing innovative products to meet dynamic market needs, as outlined in their strategy for leading the African insurance industry.  
The event also featured global thought leadership and the conference’s Headline Speaker, Per Lagerström, a former McKinsey partner and the CEO of Yellowspot. He challenged Nigerian insurers to rethink their models, emphasising the human element in innovation. “Insurance is not built on products alone; it is built on behaviour. If we do not understand how people earn, live, and dream, we cannot design solutions they will embrace. Technology gives us the tools, but human insight gives us the answers.”
In his opening remarks, the convener of the IMT Conference and the Managing Director/CEO of Modion Communications, Mr. Odion Aleobua, called on insurance innovators to build distribution that meets people where they are: online, on mobile, at work, and in communities, while conforming to evolving lifestyles. He called on regulators to adopt regulations that protect consumers without stifling industry innovation.
He also noted that the high calibre of sponsors, participants, and partners, including the Commissioner for Insurance, regulators, and industry leaders, reflected a collective commitment to shaping a future of innovation and digital adoption within the Nigerian insurance industry.
Others who spoke at the conference included Mrs Abimbola Anakomaiya, President, Professional Insurance Ladies Association (PILA); Mr Bode Pedro, MD/CEO, Casava Inc; Mr. Olalekan Oyinlade, MD/CEO, emPLE General Insurance; Mr. Deji Macaulay, CEO and Co-founder, CubeCover; Mr. Nelson Ekerele, MD/CEO, Enterprise Life Assurance Limited; Ms Adetola Adegbayi, Founder, Mutual Specialists; Uche Ayodele, Founder and CEO, FastClaim Solutions Limited; Nkiruka Okere, General Manager of aYo, Nigeria; Ayo-Bankole Akintujoye, CEO of Caladium Consulting and Ugodre Obi-Chukwu, Founder and CEO of Nairamatrics among other who participated in the Redefined 2.0, the youth segment.