Rashidat Adebisi, chief consumer officer (CCO) of AXA Mansard Insurance coverage Plc, has described the Insurance coverage Trade Reform Act (NIIRA) 2025 as a landmark coverage that can unlock progress potential within the business and financial system at giant.
She stated if NIIRA is executed properly, insurance coverage might unlock long-term funds for infrastructure, present threat cowl for MSMEs, which make up greater than 90 p.c of Nigeria’s companies, and strengthen investor confidence within the monetary system.
Talking on BusinessDay TV’s Morning Present, Adebisi referred to as on Nigeria’s insurance coverage operators to match the landmark Reform Act with disciplined execution.
He famous that the credibility of Nigeria’s insurance coverage business is not going to be judged by the scale of its steadiness sheets alone, however by what number of Nigerians it protects.
She said that recapitalisation and risk-based capital requirements characterize an historic alternative to reposition the sector however harassed that capitalisation or digitization reform with out execution excellence is not going to change the shopper’s expertise nor increase buyers’ confidence.
Whereas acknowledging the steep compliance necessities of the reform legislation, Adebisi drew parallels to Nigeria’s banking recapitalisation in 2004, which reduce the variety of banks from 89 to 25 however tripled business capitalisation and deepened buyer belief.
“We should replicate that trajectory in insurance coverage as properly. The NIIRA presents earlier than our business a chance to play a serious position in Nigeria’s bold $1tr financial system as a result of this can be a reform that addresses points round demand, provide and our operations dynamics. It’s empowering us to do extra and seeks to bolster prospects’ confidence and belief in our business,” she stated.
On the introduction of a risk-based capital framework, Adebisi described it as “a buyer safety device first, and a regulatory device second.” By aligning capital buffers with precise underwriting dangers, insurers must pay additional consideration to product design, pricing self-discipline, and make investments prudently. “Policyholders can now have better confidence that their insurer will not be biting off greater than it might probably chew,” she stated.
Addressing fears that consolidation might squeeze out smaller corporations, Adebisi defined that mergers and acquisitions are a pure path to stronger, extra secure gamers. “Consolidation shouldn’t be seen as loss, however as rebirth for a stronger business. We are going to see fewer however stronger insurers with the dimensions to spend money on expertise, enhance claims turnaround, develop distribution, and compete regionally.”
“Insurance coverage penetration in South Africa is round 17 p.c of GDP, in Kenya about 3 p.c, and in Ghana near 2 p.c. Nigeria sits at lower than 1 p.c. If NIIRA is executed properly, insurance coverage might unlock long-term funds for infrastructure, present threat cowl for MSMEs, which make up greater than 90% of Nigeria’s companies, and strengthen investor confidence within the monetary system”.
“Regulators have given us the framework. Now it’s on us, the operators, to rebuild belief with our prospects, spend money on digitisation, and ship inclusive merchandise,” she concluded.
