NAICOM's Omosehin Calls for Stronger Governance in Insurance

The National Insurance Commission (NAICOM) has warned that merely raising capital will not guarantee financial stability for insurance companies. Commissioner Olusegun Omosehin stated that effective governance and risk management are crucial for the long-term resilience of the industry.

Speaking at the eighth Annual Insurance Directors’ Conference in Lagos, themed ‘Recapitalisation to Resilience: Leading the Risk-Based Capital Era’, he explained that the transition to a risk-based capital framework would change how insurance companies are supervised. Omosehin highlighted the importance of protecting and deploying capital effectively, as poor governance and ineffective risk management could undermine even well-capitalised firms.

He distinguished between minimum capital requirements and risk-based capital, noting that a company could meet minimum requirements but still lack sufficient capital for its actual risks. He also stressed that successful recapitalisation would not exempt companies from regulatory scrutiny, urging accurate financial reporting and responsible management practices.