NAICOM, Interior Ministry Move to Deepen Insurance Penetration
By Patience Ikpeme
The National Insurance Commission (NAICOM) has opened discussions with the Ministry of Interior on new policy measures aimed at strengthening Nigeria’s insurance sector, improving public safety, and reducing the government’s financial burden on repatriation expenses.
This followed a strategic working visit by the Commission to the Minister of Interior, Dr. Olubunmi Tunji-Ojo, in Abuja.
Speaking during the meeting, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, said NAICOM remains committed to supporting the federal government with expert guidance on insurance-related matters.
According to him, the Commission continues to serve as “an adviser to government on insurance matters,” and is prepared to deepen collaboration with the Ministry of Interior to boost insurance penetration across the country.
Omosehin also stated that NAICOM is determined to strengthen data exchange and synchronization across relevant agencies to improve efficiency in the insurance system. He said enhanced data-sharing frameworks would help reduce fraud, improve policy administration, and support the expansion of the insurance sector.
Responding, Dr. Tunji-Ojo commended NAICOM for its ongoing efforts to restore public confidence in the sector. He urged insurance operators to focus more on service quality and develop solutions that respond to the needs of a rapidly evolving society. “You cannot grow an economy without growing your insurance sector,” the Minister said, adding that a robust insurance industry is essential for safeguarding citizens and ensuring prudent use of government resources.
One of the central issues discussed at the meeting was the rising cost of repatriating individuals who enter Nigeria but require government-funded return arrangements. The Minister and NAICOM agreed that these expenses amount to billions of naira annually and place a heavy burden on taxpayers. To address this, the parties explored the introduction of travel insurance specifically designed to cover repatriation costs for persons arriving in Nigeria on short-stay visas. The measure, once implemented, is expected to significantly reduce government expenditure on repatriation and improve economic stability.
During the meeting, NAICOM also called for the government to shift certain liabilities to insurance companies, explaining that such an approach would provide more efficient and cost-effective options for managing national risks. The discussions emphasized the need for innovative insurance solutions capable of supporting modern government operations and improving risk management frameworks.
The Commission and the Ministry further discussed plans to establish a comprehensive data verification system for the insurance industry. With the National Identity Management Commission (NIMC) expected to play a leading role, the proposal seeks to create a single-source verification platform that strengthens identity validation and reduces fraudulent claims. This, according to the parties, will enhance transparency and help protect consumers.
To advance these initiatives, both institutions agreed to form a technical working group. The group will examine the practical steps needed to introduce travel and repatriation insurance, develop a centralized material management system for the Ministry, and facilitate data synchronization across relevant agencies. It will also lead consultations aimed at ensuring smooth implementation of the proposed reforms.
In addition, NAICOM reiterated its commitment to enforcing regulatory oversight through an advanced solvency control and intervention framework. The Commission said it will continue to monitor insurance companies closely in order to maintain financial stability and safeguard the interests of policyholders.
The visit, according to officials, marks the beginning of a strengthened partnership aimed at driving reform, improving risk management, and promoting economic development through a more resilient and innovative insurance sector.
