NAICOM and UNDP Partner to Boost Insurance and Climate Resilience
By Patience Ikpeme
The National Insurance Commission (NAICOM) and the United Nations Development Programme (UNDP) have met to draw up a new roadmap for the nation’s insurance sector.
The meeting focused on expanding insurance access, stabilizing the market, and scaling innovative solutions for climate and disaster risks.
During the session, the UNDP Regional Specialist, Mr. David Mueller, voiced the international body’s dedication to the Nigerian market, specifically citing an interest in expanding the Lagos Flood Risk Insurance Model and boosting domestic capital mobilization for sustainable investments.
Mr. Mueller indicated that the UNDP will continue to provide a backbone for ongoing reforms, drawing on technical expertise and lessons from previous sector-wide projects. Part of this support involves a concerted effort to build systemic capacity, particularly in the specialized field of actuarial development.
Responding to the delegation, the Commissioner for Insurance (CFI), Mr. Olusegun Ayo Omosehin, expressed his appreciation for the international partnership. He pointed to five strategic pillars that now form the bedrock of NAICOM’s reform agenda, noting that the commission is focused on a transparent transition toward a more robustly capitalized industry.
“The recently enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 provides a robust legal framework for strengthening consumer protection, enhancing regulatory capacity, improving financial soundness, promoting innovation and sustainability, and expanding market access and penetration,” Mr. Omosehin stated.
The Commissioner provided updates on the industry’s mandatory recapitalization exercise, confirming that the first phase is set for completion by July 31, 2026. He explained that this process is vital to ensuring insurance institutions possess the financial stamina to handle large-scale risks. To facilitate a smooth transition, the commission has inaugurated a dedicated Recapitalization Committee to offer guidance to operators throughout the period.
Beyond financial solvency, the talks centered on the institutionalization of Environmental, Social, and Governance (ESG) principles. Mr. Omosehin confirmed that the commission is currently developing an in-house NAICOM ESG Framework, building upon diagnostic toolkits previously created in partnership with FSD Africa and the UNDP.
A major outcome of the meeting was a mutual agreement to rapidly address the shortage of actuarial talent within the country. Both organizations pledged to coordinate systemic capacity-building initiatives, such as the GAIN programme, to ensure the industry has the technical expertise required for sophisticated risk assessment.
Looking toward national safety, the two entities explored the revival of a national catastrophic insurance scheme. This initiative is expected to be a collaborative effort involving NAICOM, the UNDP, and disaster management authorities like the National Emergency Management Agency (NEMA) to provide a safety net for the country in the event of large-scale natural disasters.
