UNDP, NAICOM to Scale Lagos Flood Risk Insurance Model, Handle Climatic Change Risks

Ebere Nwoji

The United Nations Development Programme(UNDP), has said that it would help Nigerian Insurance sector through implementation of some insurance business enhancing initiatives such as  scaling the Lagos Flood Risk Insurance Model,  reviving  and advancing a national catastrophic insurance scheme, to be implemented collaboratively with NAICOM and relevant disaster management agencies, including the National Emergency Management Agency (NEMA).

The UNDP also said it would strengthen systemic capacity, including actuarial development and enable  insurers to mobilise domestic capital for sustainable investment.

The UNDP Regional specialist, Mr David Mueller, stated this during a courtesy visit to the Commissioner for Insurance, Mr Ayo Olusegun Omosehin in Abuja.

Mueller,  expressed appreciation for the commission’s leadership and reaffirmed UNDP’s commitment to supporting Nigeria’s insurance sector especially  the implementation of ongoing reforms in the   industry, drawing on lessons learned from previous UNDP supported projects within the sector.

In his response, Omosehin, welcomed the UNDP team and expressed gratitude for the agency’s  sustained support to the Nigerian insurance industry.

He outlined five strategic pillars underpinning NAICOM’s reform agenda and reiterated the Commission’s commitment to a transparent recapitalisation process, fostering innovation, and creating an enabling environment to significantly enhance insurance penetration in Nigeria.

The commissioner noted that the recently enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025, provided a robust legal framework for strengthening consumer protection, enhancing regulatory capacity, improving financial soundness, promoting innovation and sustainability, and expanding market access and penetration.

He further explained that the ongoing industry recapitalisation exercise, with the first phase scheduled to conclude on 31 July 2026, was designed to reinforce the financial stability and resilience of insurance institutions. He said to support operators, NAICOM had established dedicated support mechanisms, including a recapitalisation Committee, to guide the process.

He also affirmed NAICOM’s commitment to institutionalising environmental, social, and governance (ESG) principles and sustainable insurance practices through the development of an in-house NAICOM ESG Framework, building on prior diagnostic work and toolkits developed in collaboration with partners such as FSD Africa and UNDP.

Both parties agreed on the urgent need to rapidly scale actuarial capacity across the insurance industry through coordinated systemic capacity building initiatives, including the GAIN programme and strategic partnerships with actuarial service providers.

According to them the aimed of the meeting is to deepen collaboration and set strategic priorities to expand insurance access, enhance market stability, and scale climate and disaster risk solutions across Nigeria.