By Taiye Olayemi
National Insurance Commission (NAICOM) has urged West African countries to strengthen financial instruments and deepen regional collaboration to address the escalating risks that climate change poses to the subregion’s economies and insurance industry.
Mr Olusegun Omosehin, Commissioner for Insurance and Chief Executive Officer of NAICOM, made the call during the 2025 West Africa Insurance Companies Association (WAICA) Education Conference held in Lagos on Monday.
The theme for the conference is “The West African Insurer in the Face of Climate Change”.
Omosehin said that traditional budgetary measures were no longer sufficient to address the magnitude of climate-induced challenges facing the region.
He noted that insurance must be integrated into national planning as a critical tool for managing climate risks and ensuring economic resilience.
“Like many other African countries, Nigeria faces a significant climate finance gap. Traditional budgetary responses are no longer sufficient.
“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,” he said.
The NAICOM boss urged insurers, reinsurers and regulators across West Africa to adopt bold innovations and deepen regional cooperation in developing products and systems that address the realities of climate change in the sub-region.
“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 tailored to our region’s climate realities.”
Omosehin also emphasised the need for greater investment in data and technology to enhance climate modelling, risk assessment and product delivery.
He said, “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.”
The commissioner said that insurance should evolve from being a transactional service to a strategic enabler of sustainable development, driven by capacity building and public confidence.
Omosehin added the Federal Government had taken significant steps to strengthen the sector through the Nigeria Insurance Industry Reform Act (NIRA) 2025.
He said the Act had modernised the regulatory framework and reinforced the financial resilience of insurers.
He explained that the Act introduced stronger capital requirements, expanded compulsory insurance classes to cover agricultural and environmental risks.
He also said NIIRA also promoted deeper integration of insurance in public-private partnerships for infrastructure and climate resilience.
“These reforms are not merely technical; they are foundational to our national preparedness and long-term sustainability,” he said.
According to him, addressing climate-related risks requires a unified regional approach that combines sound regulation, market innovation and strategic partnerships among regulators, operators and development institutions.
“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. We must build solutions rooted in regional cooperation and resilience,” he said.
Earlier, Mrs Ebelechukwu Nwachukwu, Chairperson of Local Organising Committee (LOC) for WAICA Education Conference, acknowledged that climate change was no longer a future concern but currently testing the resilience of the industry.
She urged the participants to work toward adapting, innovating and leading in business solutions to mitigate the climate risks.
Also, Mr Solomon Sesay, President of WAICA, commended the Minister of State for Finance, Dr Doris Uzoka-Anite for her unwavering support for the insurance industry over the years.
Sesay also acknowledged the support of the Commissioner for Insurance for the industry as he described Omosehin as a source of inspiration to WAICA over the years.
He expressed optimism that insurance practitioners would leverage the WAICA engagement to reshape the industry. (NAN) (www.nannews.ng)
Edited by Olawunmi Ashafa