Rashidat Adebisi, Chief Client Officer at AXA Mansard Insurance Plc, has urged operators in Nigeria’s insurance sector to back the forthcoming Nigerian Insurance Industry Reform Act (NIIRA) 2025 with strong and disciplined execution. She noted that while financial capacity is important, the industry’s real value will be measured by how well it protects Nigerians.
Speaking on BusinessDay TV’s Morning Show, Adebisi described the recapitalization drive and adoption of risk-based capital standards as a rare opportunity to reposition the sector. She, however, warned that reforms limited to capital requirements and digitization, without a matching focus on flawless implementation, would fail to deliver meaningful customer benefits or attract investor confidence.
Recalling the banking sector recapitalization of 2004, which reduced the number of banks from 89 to 25 but significantly boosted capitalization and restored public trust, she encouraged insurers to chart a similar path. “NIIRA presents a chance for our industry to contribute meaningfully to Nigeria’s ambition of becoming a $1 trillion economy,” she remarked. “The Act is designed to strengthen demand, supply, and operational structures — but execution is what will determine the outcome.”
On the new risk-based capital model, Adebisi explained that it is not only a regulatory safeguard but also a way to protect customers. By tying capital requirements to underwriting risks, insurers will need to rethink product design, pricing, and investment discipline. “This framework assures policyholders that insurers are managing risks responsibly,” she said.
She also addressed concerns about smaller firms being edged out by industry consolidation, noting that mergers and acquisitions are a natural part of growth. “Consolidation should be seen as an evolution toward stronger players capable of driving innovation, improving claims management, and expanding regional reach,” she explained.
Highlighting Nigeria’s low insurance penetration — less than 1% compared with 17% in South Africa, 3% in Kenya, and 2% in Ghana — Adebisi stressed that proper implementation of NIIRA could unlock long-term capital for infrastructure, extend risk coverage to MSMEs that dominate Nigeria’s economy, and strengthen confidence in the financial system.
She concluded by calling for collective effort between regulators and operators: “The policies are set. What we need now is trust-building, digital investment, and a commitment to inclusive, innovative products.”