The United Nations Development Programme (UNDP) has pledged fresh support to strengthen Nigeria’s insurance sector, with a focus on climate risk protection, disaster preparedness, and wider financial inclusion.
The agency said it would work with the National Insurance Commission (NAICOM) and other key institutions to scale up existing initiatives, including the Lagos Flood Risk Insurance Model and the development of a national catastrophe insurance scheme. The goal, according to UNDP, is to improve how Nigeria responds financially to disasters such as flooding and other climate-related shocks.
Speaking during a courtesy visit to the Commissioner for Insurance, Mr. Ayo Olusegun Omosehin in Abuja, UNDP Regional Specialist, Mr. David Mueller, commended ongoing reforms in the sector and reaffirmed the organisation’s commitment to long-term collaboration.
He noted that beyond risk protection, UNDP is also looking at building stronger technical capacity within the industry, especially in actuarial science and data-driven insurance planning. This, he said, would help insurers better assess risks and attract more domestic investment into sustainable financial products.
In his response, Omosehin welcomed the partnership and said NAICOM remains focused on deep reforms that will reshape the industry. He highlighted key policy directions under the recently enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025, which he described as a strong foundation for improving regulation, consumer protection, and market confidence.
He also pointed to the ongoing recapitalisation exercise in the sector, which is expected to run through July 2026, explaining that it is aimed at strengthening the financial stability of insurance companies and improving their ability to meet obligations. According to him, a dedicated committee has been set up to guide operators through the process.
Omosehin added that NAICOM is also working to integrate environmental, social, and governance (ESG) principles into the industry’s operations, in collaboration with partners such as UNDP and FSD Africa, to ensure long-term sustainability.
Both sides agreed on the need to urgently expand actuarial capacity and deepen technical expertise across the sector through coordinated training programmes and partnerships.
They also emphasised that the broader objective of the engagement is to strengthen collaboration, expand insurance penetration in Nigeria, improve market stability, and scale up solutions for climate and disaster risk management.
