Nigeria insurers eye growth as regulator enforces compulsory policies

Nigeria’s National Insurance Commission (NAICOM) is training police officers to enforce compulsory insurance laws that have been widely ignored for years. The regulator recently held a session for the Nigeria Police Force’s Federal Capital Territory Command, instructing officers on how to identify fake certificates and verify genuine policies during routine checks.

The initiative is the latest step in a broader push by NAICOM commissioner Olusegun Ayo Omosehin to transform mandatory coverage into actual compliance. By partnering with law enforcement, the Federal Road Safety Corps, state governments, and fire services, NAICOM aims to move compulsory insurance beyond the statute books. The effort aligns with the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

For underwriters and investors, this enforcement drive represents one of the sector’s largest unrealised opportunities. Mandatory classes include Motor Third-Party Insurance, Builders’ Liability Insurance, Occupiers’ Liability Insurance, Group Life Insurance, and Healthcare Professional Indemnity Insurance. Improved compliance could channel millions of previously uninsured Nigerians into the formal market, generating significant premium growth.

Beyond individual protection, wider coverage carries macroeconomic benefits. It could shield businesses and public infrastructure from avoidable risks while reducing pressure on government relief programmes. Accident victims and families of deceased workers would have legal access to compensation, rather than relying on personal savings or protracted litigation.

However, capturing this potential premium growth requires the industry to address deep-rooted operational flaws. Analysts warn that insurers must complement the regulator’s enforcement by simplifying policy purchases and investing heavily in real-time digital verification platforms. Law enforcement agencies need instant authentication systems to effectively police fake policies on the ground.

Public scepticism remains a critical barrier to this expansion. Many Nigerians associate insurance with delayed claim settlements and complex documentation, perceptions that discourage voluntary compliance. Industry operators are expected to expand partnerships with transport unions, employers, and developers to build awareness ahead of strict enforcement.

Speaking on behalf of Omosehin, deputy commissioner Ekerete Ola Gam-Ikon stressed that the police force’s daily interactions with motorists make it a crucial partner in reducing uninsured vehicles. Ultimately, sustained and prompt payment of legitimate claims will determine whether NAICOM’s enforcement translates into lasting market expansion.