Agenda for Insurance Sector in 2026

Ebere Nwoji posits that 2026 is a pivotal year for the insurance sector as it is faced with diverse expectations which it must meet for it to remain relevant in the scheme of things in the finance services sector of the economy

In his new year message to the managers of insurance sector, the Chairman, Nigerian Insurers Association (NIA), Kunle Ahmed, had outlined  what he tagged, “Ambitious Agenda” for  insurance operators in the year 2026, urging  insurance chief executives  to consolidate recent gains and collaborate closely on implementing the Nigeria Insurance Industry Reform Act (NIIRA). 

Ahmed, however praised the resilience and collaborative spirit of the insurers, crediting them with strengthening public confidence and advancing market development throughout 2025. 

He noted that last year was transformative for the NIA and the industry, citing initiatives that expanded market depth, enhanced stakeholder engagement, and amplified the industry’s public voice as some of the virtues imbibed by the operators during the period.

He highlighted some achievements of the member companies of NIA as the launch of the NIA Innovation Lab, sustained advocacy on compulsory insurances, and regular engagements with the National Insurance Commission that led to improvements in regulatory circulars among others.

Good as these achievements and dreams of the industry are, Nigerians is waiting for the manifestation of insurance sector as a major contributor to the nation’s gross domestic products (GDP) of the economy.

Indeed, expectations for the industry by Nigerians this year is high. This is because, with the signing into law of the NIIRA 2025, Nigerians assume that the insurance industry has finally emerged. More so, with the recapitalisation initiative currently backed by regulation which cannot be altered this time, the industry is no longer and can no longer be looked upon as poor cousin of banks.

This being the case, it behoves on the industry operators to gird their loins and put on their thinking caps and evolve initiatives that will enable them meet these expectations.

Going Digital

Along this line, one of the foremost challenges facing the industry in 2026 is having successfully transformed the industry to a trillion naira market in the year 2023, a dream that took the industry 14 good years from 2009; when the regulator set the target for the operators to grow the industry’s annual premium from N260 billion to N1 trillion,  operators are now faced with the challenge of transforming  the sector into a digitally-driven, inclusive, resilient, and globally competitive industry that contributes significantly to national economic development and financial security.

This, if achieved, will enable operators successfully win the war on deepening of Insurance Penetration & Financial Inclusion among Nigerians.

This means ensuring that insurance services are taken to the door step of an average Nigerian.

The sector has been crusading on this but insurance market in Nigeria is still grossly underserved and no other channel can do the magic other than digital channels.

To this effect, experts say operators should accelerate digital transformation and innovation by adopting such strategies as opening Insurance & API (Application Programming Interfaces) Framework:  The regulator, the experts said, should be able to develop regulatory guidelines for Open API standards to foster innovation, enable InsurTech partnerships, and embed insurance in everyday transactions such as 

e-commerce, travel, loans etc.

“On digitalisation of operations, the regulator should embark on Digital Licensing Sandbox by establishing a permanent regulatory sandbox to fast-track testing and adoption of innovative solutions such as parametric insurance, block chain for claims, IoT for risk pricing,” a market watcher volunteered.

In addition are micro insurance and Takaful insurance expansion which analysts said if the market is explored could stand as the industry’s cash cow.

Operators are expected to incentivise products for the informal sector, agriculture, and low-income households through mobile platforms and agent banking networks.

For now, the industry is yet to bring majority of farmers in the country under insurance coverage by designing products that can convince and entice even peasant farmers to buy low cost agriculture insurance policies to cushion effects of such unforeseen losses like epidemics, fire outbreaks seasonal losses.

Compulsory insurances

The industry has over the years been dreaming about practical enforcement of the six compulsory insurances such as Motor Vehicle Third party Insurance, mandated by the Motor Vehicle Third Party Insurance of 1945; updated by Insurance Act of 2003 and NIIRA 2025. Group life insurance, mandated by Pension Reform Act of 2014, Insurance of Public buildings, Builders Liability Insurance for building under construction, Employers’ Liability Insurance and Healthcare Professional Indemnity Insurance which mandates licensed healthcare providers and medical institutions to protect patients against professional negligence.

Though the insurance sector regulator, the National Insurance Commission (NAICOM) had in 2010 launched the implementation of these compulsory insurances in the six geopolitical zones of the country, till date their real enforcement leaves much to be desired. Not even the popular Motor Third party insurance can be said to have been adequately enforced.

Now that the NIIRA 2025 has expanded these compulsory insurances from six to 11, to include Aviation Third Party Insurance, Marine Insurance and others, operators have got more challenge at hand in this regard this year and that is how to effectively enforce these compulsory insurances.

NAICOM State governments collaboration

It is expected that NAICOM should this year intensify its on-going efforts in visiting and collaborating with various state governments on the compulsory insurance enforcement. 

The regulator should this time ensure that its on-going recapitalisation initiative is conclusive by blocking every loophole through which its success may be eroded as was the case in the past.

Improving Claims Settlement

Trust is a very important factor in insurance business. Trust is confidence which the insured has on the insurer that in the event of loss, the insurer will be there to compensate him through claims payment. The regulator should therefore enforce a strict industry-wide claims charter with maximum timelines for claims settlement, backed by public reporting of insurers’ performance and penalties. It should also stablish a centralized, tech-driven industry bureau to share data and combat insurance fraud.

The new year 2026, indeed holds a lot for the industry if well managed. Therefore, insurers need to be collaborative, decisive, and tech-enabled execution from regulators, insurers, distributors, and technology partners. By focusing on these priorities and achieving them, the sector can become a pillar of Nigeria’s economic resilience and growth.