Translating NIIRA 2025 into Action in Life Business

After more than two decades in Nigeria's insurance sector, Mathew Ogelenya Ogwezhi observes a persistent challenge: low insurance penetration despite a population exceeding 200 million and a dynamic economy. He identifies widespread distrust, unaffordability of current products, and a lack of perceived value as significant hurdles.

“

Many Nigerians distrust the industry, find current products unaffordable, or do not see their value.

Ogwezhi views the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as the most comprehensive legislative reform he has witnessed. The act addresses critical areas including capital adequacy, governance frameworks, consumer protection, and digital transformation. However, he cautions that the success of such legislation depends not on the quality of its drafting, but on the seriousness with which industry practitioners implement it.

“

This legislation is the most comprehensive reform I have witnessed in my career.

The capital requirements outlined in NIIRA 2025 have generated considerable discussion. Ogwezhi acknowledges that recapitalization is a difficult and disruptive process, often leading to complex conversations about ownership and mergers. He stresses, however, that capital is fundamental to credibility, enabling insurers to assure policyholders of their reliability. He advises insurers to view the new capital thresholds as an opportunity to build genuine financial strength, which will be recognized by investors, regulators, and customers.

“

It was always the seriousness with which practitioners chose to implement it.

Regarding consumer protection, NIIRA 2025 mandates fair treatment of policyholders, a principle Ogwezhi believes should not require legislation. He identifies the failure to pay claims promptly and transparently as the primary cause of reputational damage in the industry. Each delayed or unfairly contested claim, he argues, results in the loss of numerous potential customers. The act's push for faster, simpler, and more transparent claims processes is framed not merely as a compliance exercise, but as a crucial business transformation essential for long-term survival and growth.

“

Capital is not a regulatory burden to be satisfied and filed away. It is the foundation of credibility.