Experts Urge Insurance Industry to Go Beyond Recapitalisation

Industry experts have said Nigeria’s ongoing insurance recapitalisation exercise must be supported with deliberate investments in skills development, technology adoption and market expansion to deliver tangible benefits to the economy and the public.

A former President of the Chartered Insurance Institute of Nigeria, Edwin Igbiti, said the current phase of reform requires deep reflection and reinvention across the insurance profession.

According to him, recapitalisation should serve as a foundation for broader transformation, including improved customer awareness, modernised underwriting processes and expanded coverage for underserved segments of the population.

He noted that while additional capital creates room for growth, insurers must deploy those resources strategically to upgrade operations and improve service delivery, particularly through the use of technology.

Igbiti stressed that digital tools should enable faster underwriting, better risk assessment and wider access to insurance products, especially for low-income and informal groups that remain largely excluded from coverage.

He also emphasised the importance of human capital development, saying insurance professionals must continuously upgrade their technical skills and mindset to meet the expectations of increasingly informed clients.

According to him, the need for upskilling cuts across the entire insurance value chain, including underwriters, brokers, loss adjusters and other industry professionals, all of whom must reassess their practices to remain relevant.

Similarly, the Executive Secretary and Chief Executive Officer of the Nigerian Council of Registered Insurance Brokers, Tope Daramola, said the industry has entered a consolidation phase that presents both challenges and opportunities for operators, particularly brokers.

He explained that consolidation driven by recapitalisation is expected to accelerate, strengthening insurers’ underwriting capacity and increasing the responsibility on brokers to expand market reach and grow insurance penetration.

Daramola said brokers play a critical role in converting policy reforms into real economic value, noting that industry growth depends largely on their ability to engage clients, educate policyholders and expand access to insurance products.

He added that professionalism and ethical conduct would be crucial as the industry evolves, warning that sustainable growth cannot be achieved without strong professional standards.

Industry analysts maintain that recapitalisation alone cannot transform the sector, stressing that long-term growth will depend on the alignment of capital with skilled manpower, ethical practices, modern technology and deliberate efforts to deepen market access.