The National Insurance Commission (NAICOM) has called for the implementation of a transparent, competitive and inclusive framework for the Lagos State Building Insurance Scheme, as part of efforts to strengthen risk management, consumer protection and insurance penetration in Nigeria.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, made the call on Friday at the official launch of the scheme in Lagos.
Represented by the Deputy Commissioner for Insurance, Finance and Administration, Mr Ekerete Ola Gam-Ikon, Omosehin described the initiative as a significant milestone in enhancing insurance coverage and disaster resilience across the state.
What they are saying
According to Omosehin, insurance remains a critical social protection mechanism that enables individuals, businesses and governments to recover more quickly from unforeseen disasters.
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He noted that the Lagos State Building Insurance Scheme is designed to ensure that victims are not left to bear the financial consequences of disasters alone.
- “On behalf of NAICOM, I make three commitments today. First, we will provide the regulatory backing that this scheme requires, ensuring that every policy issued under it is underwritten by companies licensed and supervised by the commission, and by no one else.
- “Second, we will support Lagos State in the fight against fake certificates and unlicensed operators, because a compulsory scheme is only as strong as the integrity of the cover behind it.
- “Third, and let me state this very clearly, the commission will support and insist upon a scheme architecture that is open, transparent, competitive, and accessible to all insurance operators duly licensed by NAICOM,” he said.
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Omosehin said the scheme aligns with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which strengthened compulsory insurance requirements, enhanced consumer protection and promoted digital insurance operations.
He explained that the legislation mandates insurance coverage for public buildings and buildings under construction above a prescribed height, with the objective of protecting property owners, occupants and third parties against potential losses.
According to him, Lagos State has taken the lead in translating the national legislation into an enforceable state-level programme, a move he believes could serve as a template for other states across the federation.
The NAICOM chief also urged insurers to prioritise the prompt settlement of genuine claims in order to deepen public trust in the industry.
He encouraged property owners to view insurance as an investment in resilience and called on developers, brokers, insurance companies and government agencies to collaborate in ensuring the successful implementation of the scheme.
What you should know
The launch of the Lagos State Building Insurance Scheme comes as NAICOM intensifies efforts to transition Nigeria’s insurance industry to a risk-based supervisory and capital framework.
- Recently, the commission appointed global professional services firm Ernst & Young (EY) as Consulting Actuary to support the finalisation and implementation of Nigeria’s Risk-Based Capital (RBC) framework.
According to Omosehin, the appointment is part of NAICOM’s ongoing Risk-Based Capital Implementation Project, which aims to align capital requirements within the insurance sector with the specific risk profiles of operators, while strengthening financial stability and policyholder protection.
