Lagos, Oct. 14, 2025 – The National Insurance Commission (NAICOM) has called on West African countries to jointly strengthen financial instruments and deepen regional collaboration to address the escalating risks associated with climate change in the subregion
Olusegun Omosehin, the Commissioner for Insurance and Chief Executive of NAICOM, made the call in Lagos on Monday at the 2025 West Africa Insurance Companies Association (WAICA) Education Conference.
He said traditional budgetary measures were no longer sufficient to address the magnitude of climate-induced challenges facing the region.
NAICOM boss said climate-related risks required 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.
NAICOM boss advised 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.
Omosehin also urged insurers, reinsurers and regulators across in 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.”
He also stressed the need for greater investment in data and technology to enhance climate modelling, risk assessment and product delivery.
“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.
He said the Federal Government had taken significant steps to strengthen the sector through the Nigeria Insurance Industry Reform Act (NIRA) 2025.
Omosehin said the Act had modernised the regulatory framework and reinforced the financial resilience of insurers as well as 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.
