The National Insurance Commission (NAICOM) has said that regional insurance collaboration is needed to bridge the climate finance gap in West Africa.
The Commission’s Chief Executive Officer, Olusegun Omosehin, made the call while delivering a keynote address at the 2025 West Africa Insurance Companies Association (WAICA) Education Conference in Lagos on Monday, October 13.
He emphasised that integrating insurance into national economic planning is one of the most effective strategies for managing climate risks and strengthening economic resilience across the region.
He urged insurers, reinsurers, and regulators across West Africa to adopt innovative solutions and deepen regional cooperation in creating financial products that respond effectively to climate realities in the sub-region.
“To my colleagues across WAICA member states — insurers, reinsurers, and industry leaders — this is a call to action,” he said.
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“We must innovate boldly, developing parametric and microinsurance products tailored to our region’s climate realities,” Omosehin said.
He noted that, like many other African countries, Nigeria faces a significant climate finance gap, stressing that traditional budgetary responses are no longer sufficient to tackle the growing economic and social disruptions caused by climate change.
“We must strengthen financial instruments that allow us to anticipate shocks rather than merely react to them. When integrated into national planning, insurance becomes one of the most effective tools of climate risk management and economic resilience,” the NAICOM boss said.
He further stressed the need to invest in data, technology, and climate modelling to improve risk assessment and product development.
“We must collaborate across borders, pooling risks and resources to build regional resilience. We must also expand inclusion to ensure that insurance reaches farmers, market women, artisans, and micro-entrepreneurs who form the backbone of West African economies,” Omosehin maintained.
According to him, the federal government has strengthened the insurance sector with the Nigeria Insurance Industry Reform Act (NIIRA) 2025, which modernises the regulatory framework and enhances financial stability within the industry.
“These reforms are not merely technical; they are foundational to our national preparedness and long-term sustainability,” Omosehin said.
According to him, addressing climate-related risks requires a unified regional approach that blends regulation, innovation, and partnership among governments, private sector players, and development institutions.
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“Climate change does not respect borders. Its impacts are felt everywhere — in every nation, every community, and every sector. Just as rain falls on many roofs, so too must our response be collective,” he added.
Pinnacle Daily reports that President Bola Tinubu signed the NIIRA 2025 into law in August.
The Act is aimed at modernising Nigeria’s insurance sector toward a $1 trillion economy.
It introduces stringent measures as capital raising requirements, compulsory insurance enforcement, and digitisation mandates, strengthening NAICOM’s power to regulate and supervise all insurance and reinsurance businesses operating within Nigeria.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
