Barbara Bako, Abuja.
The National Insurance Commission (NAICOM) has urged insurance companies to move beyond traditional risk assessment models as climate change, cyber threats, economic volatility and other emerging risks increasingly reshape the industry.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Ayo Omosehin, gave the charge at the 2026 Insurance Professionals’ Forum in Abeokuta, Ogun State, stressing that insurers could no longer depend solely on historical loss data to predict future risks.
Speaking on the theme, “The Economics of Risk: Sustaining a Resilient Insurance Industry,” Omosehin said the changing risk environment required insurers to adopt predictive analytics, enterprise risk management, scenario modelling, climate intelligence and advanced technology in their decision-making.
“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.
He said the nature of risk had become increasingly interconnected and global, with traditional threats now existing alongside climate-related disasters, cyber vulnerabilities, geopolitical uncertainties, supply-chain disruptions, inflation and exchange-rate fluctuations.
According to him, the COVID-19 pandemic further demonstrated that some risks could transcend sectors, borders and conventional risk classifications, making institutional agility, sound governance and operational preparedness critical to building resilience.
Omosehin also said the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had ushered in a new phase for the sector, characterised by stronger institutions, enhanced regulatory oversight and greater emphasis on policyholder protection.
He said the ongoing recapitalisation of the insurance industry was designed not merely to raise financial thresholds but to strengthen insurers’ capacity to retain larger risks, settle claims efficiently, invest in technology and talent, and participate in major national projects.
“The true measure of recapitalization therefore lies not in balance sheet expansion alone, but in the creation of stronger, more resilient institutions capable of delivering sustainable value to policyholders and the broader economy,” the commissioner said.
On consumer confidence, Omosehin described insurance as a promise, noting that policyholders pay premiums with the expectation that valid claims would be honoured when obligations arise.
He said strong corporate governance, ethical leadership, transparency, accountability, fair market conduct and prompt claims settlement remained essential to rebuilding and sustaining public trust in the industry.
The commissioner further called for greater investment in technology, including artificial intelligence, machine learning, predictive analytics, blockchain and geospatial intelligence, saying digital transformation should be treated as a strategic imperative rather than an operational option.
He also urged insurance professionals to acquire multidisciplinary skills in areas such as data analytics, cybersecurity, climate-risk assessment, governance and enterprise risk management.
Omosehin said expanding insurance coverage remained one of the biggest opportunities for the industry, with millions of Nigerians still uninsured or underinsured.
He called for more affordable and accessible products, including microinsurance and agricultural insurance, as well as technology-driven distribution channels capable of reaching underserved Nigerians.
He said a resilient insurance industry would not only protect individuals and businesses from financial shocks but also support investment, entrepreneurship, infrastructure development, agricultural productivity and broader economic growth.
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