Rashidat Adebisi, Chief Client Officer of AXA Mansard Insurance Plc, has called on Nigeria’s insurance industry to ensure that the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 is matched with disciplined and effective execution. She emphasized that the industry’s credibility will be judged not solely by its financial strength but by its capacity to protect Nigerians.
Speaking on BusinessDay TV’s Morning Show, Adebisi highlighted that recapitalization and the adoption of risk-based capital standards present a historic opportunity to reposition the sector. However, she cautioned that reforms around capital and digitization, without a focus on execution excellence, will fall short of improving customer experience or boosting investor confidence.
Drawing parallels with Nigeria’s banking sector recapitalization in 2004, which reduced the number of banks from 89 to 25 but tripled industry capitalization and enhanced customer trust, she urged the industry to pursue a similar trajectory. “NIIRA offers an opportunity for the insurance sector to play a pivotal role in Nigeria’s goal of becoming a $1 trillion economy,” she said. “The reform addresses critical issues related to demand, supply, and operational dynamics, empowering us to do more and build greater trust among customers.”
Regarding the new risk-based capital framework, Adebisi described it as primarily a customer protection mechanism as well as a regulatory tool. By aligning capital reserves with underwriting risks, insurers will need to pay closer attention to product design, pricing discipline, and prudent investment. “Policyholders can be more confident that their insurers are not overextending themselves,” she explained.
Addressing concerns that industry consolidation might marginalize smaller firms, Adebisi clarified that mergers and acquisitions are natural pathways to a more resilient and competitive industry. “Consolidation shouldn’t be viewed as a loss but as a rebirth — leading to fewer, stronger insurers with the capacity to invest in technology, improve claims processing, expand distribution, and compete regionally.”
She also pointed out that insurance penetration in Nigeria remains below 1%, compared to 17% in South Africa, 3% in Kenya, and 2% in Ghana. If NIIRA is properly executed, the sector could unlock long-term funding for infrastructure projects, provide risk coverage for MSMEs — which constitute over 90% of Nigeria’s businesses — and enhance investor confidence in the financial system.
Adebisi concluded by urging regulators and industry operators to work together: “The regulatory framework is in place. Now, it’s on us to rebuild trust with customers, invest in digital transformation, and deliver inclusive, innovative products.”
