The National Insurance Commission (NAICOM) has urged stronger regional cooperation among West African countries to close the widening climate finance gap and boost resilience against climate-related shocks.
Speaking at the 2025 West Africa Insurance Companies Association (WAICA) Education Conference held in Lagos, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Omosehin, emphasized that insurance must be a key part of national economic planning to effectively manage climate risks and support long-term economic stability.
He called on insurers, reinsurers, and regulators across the region to embrace innovation and develop tailored financial products that address Africa’s unique climate challenges.
“To my colleagues across WAICA member states — insurers, reinsurers, and industry leaders — this is a call to action. We must innovate boldly, developing parametric and microinsurance products that reflect our region’s climate realities,” Omosehin stated.
Traditional Funding No Longer Enough
Omosehin warned that conventional budgetary responses are inadequate to deal with the rising financial and social impact of climate change.
“Like many other African nations, Nigeria faces a significant climate finance gap. Traditional budgetary approaches can no longer keep pace,” he said. “We must create financial instruments that help us anticipate shocks rather than merely react to them. When integrated into national planning, insurance becomes one of the most effective tools for climate risk management and resilience.”
Investing in Data and Collaboration
The NAICOM boss also highlighted the importance of data, technology, and climate modelling to improve risk assessment and insurance innovation. He called for a regional framework that enables countries to pool risks and resources, making insurance products more inclusive and affordable.
“We must work together across borders to build collective resilience. Expanding access to insurance for farmers, artisans, traders, and small business owners is essential to protecting the backbone of West Africa’s economies,” he added.
Nigeria’s Reform Agenda for a Stronger Insurance Sector
Omosehin noted that Nigeria is already taking bold steps to strengthen its insurance industry through the Nigeria Insurance Industry Reform Act (NIIRA) 2025. The Act modernizes regulations, introduces higher capital requirements, expands compulsory insurance to cover agricultural and environmental risks, and encourages public-private partnerships for infrastructure and climate adaptation.
“These reforms are not just technical adjustments — they are critical to our national preparedness and long-term sustainability,” he said.
A Collective Regional Response
Omosehin stressed that climate challenges require regional unity, blending regulation, innovation, and collaboration among governments, private sector players, and development institutions.
“Climate change knows no borders. Its impact is shared across nations, communities, and industries. Just as rain falls on many roofs, so too must our response be collective,” he concluded.
Background
In August, President Bola Ahmed Tinubu signed the Nigeria Insurance Industry Reform Act (NIIRA) 2025 into law — a landmark policy aimed at modernizing the sector, strengthening consumer protection, and supporting Nigeria’s goal of becoming a $1 trillion economy.
The Act empowers NAICOM to regulate all insurance and reinsurance businesses in Nigeria and sets the stage for a more innovative, inclusive, and climate-resilient insurance ecosystem.
