Former President of the African Development Bank (AfDB), Dr Akinwumi Adesina, has been named Global Ambassador for Insurance in Nigeria and Face of Insurance in the country, pledging to champion reforms to reposition the sector as a major driver of economic growth.
Adesina made the commitment while delivering the keynote address at the Nigeria Insurance Directors Conference, organised by the Chartered Insurance Institute of Nigeria (CIIN) in collaboration with the National Insurance Commission (NAICOM) in Lagos.
He said he would leverage his experience, international networks and leadership influence to promote the growth, visibility and transformation of the Nigerian insurance industry.
Speaking on the theme, “Building the Nigerian Insurance Industry: Institutional Transformation, Public Accountability and National Economic Development,” Adesina challenged operators, regulators and industry leaders to prioritise public confidence, accountability and professional standards.
He said Nigeria’s insurance penetration, estimated at about 0.5 per cent of Gross Domestic Product (GDP), remained a major obstacle to protecting households, businesses and productive investments.
According to him, the industry must move beyond conventional business practices and play a strategic role in supporting the Federal Government’s ambition of building a $1 trillion economy.
“Do not just build insurance companies. Insure the nation. Protect its wealth. Finance its growth,” he said.
Adesina stressed that sustainable economic growth depended on an insurance industry capable of protecting productive assets, managing risks, supporting investments and mobilising long-term capital.
He identified rebuilding public confidence as one of the sector’s most pressing challenges, noting that the credibility of insurance companies depended largely on their willingness to honour legitimate claims.
He said the true value of insurance was demonstrated when policyholders suffered losses and received the protection promised under their policies.
“When a policyholder pays an insurance premium, that policyholder deserves a premium service in return,” he said.
The former AfDB president urged insurance companies to ensure prompt and transparent claims settlement, while calling on their boards to take greater responsibility for claims performance, customer complaints and management accountability.
He also proposed that NAICOM introduce an annual public accountability and performance report covering claims received and settled, outstanding claims, settlement timelines, customer complaints, regulatory compliance, financial soundness and corporate governance.
Adesina argued that the industry could not demand public confidence while resisting public scrutiny.
On the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act 2025, he cautioned that increased capital alone would not guarantee stronger institutions.
“Recapitalisation is not the same as institutional transformation,” he said.
He maintained that stronger capitalisation must be supported by sound corporate governance, disciplined underwriting, adequate technical reserves, effective risk management and robust reinsurance arrangements.
He called on insurance directors to strengthen board oversight, scrutinise related-party transactions and ensure that internal audit, actuarial, compliance and risk-management functions operated independently.
Adesina also urged NAICOM to deepen risk-based supervision and hold insurance companies accountable for measurable performance under the industry’s reform framework.
He advocated expanded insurance coverage across agriculture, infrastructure, manufacturing, energy, transportation, healthcare and housing, noting that effective risk management was critical to attracting investments into productive sectors.
Drawing on his experience at the AfDB, he said development finance and risk management must work together, as investors were unlikely to commit substantial resources to projects where risks were inadequately managed.
He urged insurance companies to channel part of their investible funds into commercially viable infrastructure and productive-sector investments, while maintaining their obligations to policyholders and complying with regulations.
However, he cautioned that national development priorities must not override the financial interests of policyholders.
Adesina further advocated stronger domestic reinsurance capacity to enable Nigerian institutions to retain and prudently manage a greater proportion of insurable risks within the country.
He welcomed NAICOM’s 2031 targets of increasing insurance penetration to 10 per cent of GDP, extending active insurance coverage to 25 million Nigerians and developing 6,000 certified insurance professionals.
He said achieving the targets would require coordinated efforts by the regulator, professional institutions and insurance companies.
While NAICOM should provide strategic direction and regulatory oversight, he said CIIN must strengthen professional development, certification, competence and ethical leadership.
Insurance companies and their boards, he added, should establish measurable targets for expanding coverage, improving claims settlement, strengthening corporate governance and deploying technology.
He proposed an annual industry performance scorecard, supported by quarterly monitoring and periodic independent assessments.
“The measure of success must be outcomes, not announcements,” he said.
Adesina’s acceptance of the ambassadorial role reflects his commitment to strengthening the insurance industry and positioning it to support Nigeria’s long-term economic development.
He also drew on his doctoral research at Purdue University on agricultural risks, his experience managing agricultural risks as Nigeria’s Minister of Agriculture, and his work on climate resilience and development financing during his tenure at the AfDB.
He urged insurance professionals, regulators and industry leaders to take collective responsibility for building institutions worthy of public confidence.
According to him, the future of Nigerian insurance would depend not merely on capital raised or premiums collected, but on the protection delivered to policyholders and the confidence inspired among the public.
“And the time to begin is now,” he said.
