Yemisi Izuora
The National Insurance Commission (NAICOM) has provided unique information on the benefits of insurance and how it is positioned to boost national economy.
Speaking at the 2026 Insurance Professionals’ Forum which held in Abeokuta, Ogun State with the theme “The Economics Of Risk: Sustaining A Resilient Insurance Industry’ the Commissioner for Insurance Olusegun Omosehin, clearly stated that
the insurance industry occupies a uniquely strategic position within every economy as it mobilizes long-term savings, facilitates investment, supports financial stability, protects households, promotes entrepreneurship, encourages capital formation, and underwrites economic growth.
Omosehin, noted that Agriculture cannot flourish without crop insurance, while Infrastructure development cannot proceed sustainably without construction and engineering covers.
In addition he stressed that trade cannot expand without marine insurance and credit markets cannot deepen without adequate protection mechanisms. Energy projects cannot attract investment without robust risk transfer structures.
The Commissioner noted that insurance is often described as the invisible infrastructure of economic development because its contribution, though frequently unnoticed, is indispensable.
Viewed from this perspective, he said the economics of risk extends beyond actuarial calculations and underwriting decisions and it concerns the broader relationship between uncertainty, productivity, social welfare, financial stability, and sustainable development.
While the foundational purpose of insurance remains unchanged, the nature of risk itself is evolving, he said adding that the contemporary risk environment is increasingly interconnected, systemic, and global.
Explaining further the Commissioner added that traditional risks such as fire, marine losses, motor accidents, industrial hazards, and property damage remain significant and they now coexist with emerging risks whose frequency, scale, and complexity challenge conventional underwriting models.
Again, he noted that climate change has fundamentally altered catastrophe patterns as flood, droughts, desertification, storms, and environmental degradation are producing loss events that are larger, more frequent, and less predictable.
Similarly, digital transformation has created a vast new risk frontier and cyber threats have evolved into strategic risks capable of disrupting businesses, compromising critical infrastructure, undermining confidence, and generating substantial financial losses.
The Commissioner also recalled that the COVID-19 pandemic further demonstrated the systemic nature of modern risks, and reminded regulators and insurers alike that some threats transcend sectors, borders, and traditional risk classifications as it reinforced the reality that resilience cannot be built solely through financial capital. It must also be supported by institutional agility, sound governance, operational preparedness, and strategic foresight.
“Furthermore, inflationary pressures, exchange-rate fluctuations, supply-chain disruptions, and macroeconomic uncertainties continue to test the financial resilience of insurers across the globe.
“The consequence is clear: insurance institutions can no longer rely exclusively on historical loss data as a predictor of future experience. The future belongs to insurers that integrate predictive analytics, enterprise risk management, scenario modelling, climate intelligence, and advanced technological tools into decision-making processes.” he said.
Expatiating on regulations, the NAICOM Chief Executive, noted that no insurance market can achieve sustainable growth without effective regulation.
According to him, The fundamental purpose of insurance regulation is not merely to enforce compliance. Modern insurance regulation exists to preserve financial stability, protect policyholders, maintain public confidence, and ensure the sound functioning of the risk transfer mechanism upon which economic activity depends.
The global regulatory paradigm has evolved significantly from rules-based supervision to risk-based and principle-based frameworks that focus increasingly on governance, capital adequacy, market conduct, risk management, and institutional resilience.
This is precisely the direction we have embraced in Nigeria. For the Commission, the enactment of NIIRA 2025 represents not the conclusion of reform but the beginning of a new era for the Nigerian insurance industry.