Yemisi Izuora
The Chairman, Board of Directors of Rex Insurance Limited, Mr. Ike Chioke, has said that both the Nigerian insurance and pension sectors are critical to sustain Nigeria’s economic growth.
Chioke, in his remarks at the 10th Anniversary Conference of the National Association of Insurance and Pension Editors (NAIPE) which held in Lagos on Tuesday, September 16, said the Insurance and pensions are not mere financial products but are the backbones for a resilient economy.
He explained that while Insurance provides risk protection, enabling businesses, households, and government institutions to recover from shocks, Pensions, on the other hand, guarantee dignity in retirement, reduce old-age poverty and promote long-term financial security.
Together, they mobilize savings, create stability and fund investments that drive growth, he added.
However, he observed that trust deficits, limited awareness, and weak enforcement mechanisms have constrained uptake and to truly make insurance and pensions engines of economic transformation, and advocated a stronger collaboration to strengthen their frameworks at policy, regulatory, and operational levels.
According to him, both sectors will be better positioned to protect policyholders, mobilize long-term capital and support sustainable economic growth.
Speaking on the theme of the conference “Strengthening Insurance and Pension Frameworks for a Better Economy”, Chioke said it is both timely and significant as Insurance and pensions are twin pillars of financial security and they not only safeguard individuals and businesses against risks but also serve as critical enablers of long-term economic growth.
While stressing need for robust framework to support their growth, he noted that a robust framework provides the rules, structures, and enabling environment for sustainable growth.
For insurance and pensions, this means regulatory alignment that ensures solvency, transparency, and consumer protection while encouraging innovation.
He also points out that leveraging technology and data are essential to make products more accessible, affordable, and inclusive while enforcement and compliance ensures that laws around compulsory insurance and pension contributions are properly implemented.
Chioke also spoke on the need to build confidence through prompt claims settlement, transparency, and ethical practices.
Specifically talking about insurance growth, he said the country’s insurance industry has entered a new era with the signing of the Nigerian Insurance Industry Reform Act (NIRA 2025).
This landmark legislation consolidates outdated laws, raises minimum capital requirements, introduces risk-based capital adequacy, enforces faster claims settlement, digitizes regulatory reporting, and strengthens consumer protection. Together, these measures are reshaping the industry into a more resilient and transparent sector that can better serve policyholders and the wider economy, he added.
Providing data to buttress his point, he noted that the industry performance shows strong growth with the Gross Written Premiums (GWP) rose from ₦1.003 trillion in 2023 to ₦1.562 trillion in 2024, a 56 per cent year-on-year increase, while total assets expanded from ₦2.67 trillion to ₦3.9 trillion over the same period; a growth of 46.1 per cent.
Claims payments have also grown, with the industry settling ₦622 billion in 2024 (₦437 billion in non-life and ₦185 billion in life claims), demonstrating stronger underwriting capacity and consumer trust.
He disclosed that in Q1 2025, Gross Written Premium was ₦769.2 billion, representing 63.4 per cent growth compared to Q1 2024. The industry assets rose further to ₦4.2 trillion.
In August 2025, the National Insurance Commission (NAICOM) issued guidelines for Insurtech operations, providing a unified regulatory framework for these technology-driven insurance businesses.
Digesting information on the pension system, he noted that the pension system has grown impressively since the enactment of the Pension Reform Act of 2014, which consolidated earlier reforms and strengthened the contributory pension scheme.
The Commission’s risk-based supervision framework has strengthened the sector’s resilience, while recent initiatives focusing on customer protection have enhanced transparency and accountability.
Today, the industry manages trillions of naira in assets. When well-governed, these funds represent a powerful tool for nation-building.
He went further to state that the Commission has improved in its compliance with ₦1.58 billion recovered from defaulting employers in April 2025 alone, building on over ₦24.53 billion recovered between 2012 and 2023.
These measures ensure greater accountability, protect workers’ savings, and reinforce trust in the system.
In June 2025, PenCom launched the Pension Boost 1.0 a new initiative under the Contributory Pension Scheme (CPS) aimed at increasing monthly pension payments to retirees. With the launch, total monthly pension payouts have increased from N8.3 billion to N11.9 billion
In August 2025, the Commission published the Revised ICT Guidelines for Pension Fund Operators that provides a crucial framework for technology adoption and operations in the pension industry.
However, he noted that there still lies vast opportunities for the regulatory framework to address especially in emerging trends around ESC, Investment instruments, cybersecurity, AI, demographic shiftsand flexible pension products that will address the changes in employment patterns (referencing the gig economy)