UNDP, NAICOM move to expand climate risk insurance in Nigeria
The United Nations Development Programme (UNDP) has indicated readiness to expand climate risk insurance solutions in Nigeria, with plans to scale up the Lagos Flood Risk Insurance Model and strengthen
The United Nations Development Programme (UNDP) has indicated readiness to expand climate risk insurance solutions in Nigeria, with plans to scale up the Lagos Flood Risk Insurance Model and strengthen the country’s insurance industry.
This formed part of discussions during a meeting with the National Insurance Commission (NAICOM), where both organisations agreed to deepen cooperation aimed at widening insurance access, improving market stability and developing solutions to climate and disaster risks across the country.
Speaking during the visit, a UNDP Regional Specialist, David Mueller, said the agency is committed to supporting reforms already underway in Nigeria’s insurance sector. He explained that UNDP would build on lessons from earlier interventions to help strengthen systems, including developing actuarial expertise and supporting insurers to mobilise local capital for long-term investments.
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Mueller also pointed to the Lagos Flood Risk Insurance Model as a key initiative that could be expanded to better protect communities and businesses from climate-related losses.
Both sides stressed the need to urgently build actuarial capacity within the industry, noting that stronger technical expertise is essential for pricing risk accurately and sustaining insurance operations. They agreed to pursue coordinated programmes, including partnerships under initiatives such as the GAIN programme, to train professionals and support service providers in the sector.
In his remarks, the Commissioner for Insurance, Olusegun Ayo Omosehin, welcomed the UNDP delegation and thanked the organisation for its continued involvement in the growth of Nigeria’s insurance market.
He explained that NAICOM’s current reform programme is built on five key priorities aimed at strengthening the industry, improving transparency and encouraging innovation. He also gave assurances that the ongoing recapitalisation exercise would be carried out in a fair and open manner to boost investor confidence and improve the capacity of insurance companies.
Omosehin said the recently passed Nigerian Insurance Industry Reform Act 2025 provides a stronger legal foundation for the sector. According to him, the law is expected to improve consumer protection, enhance regulatory oversight, promote innovation and sustainability, and increase access to insurance services nationwide.
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He added that the recapitalisation programme, with its first phase expected to end by July 31, 2026, is designed to make insurance firms more financially stable and better able to meet their obligations. To ensure a smooth process, NAICOM has set up a dedicated committee to guide operators through the exercise.
The commissioner also spoke on efforts to integrate Environmental, Social and Governance standards into the industry. He said the commission is working on an internal ESG framework to promote responsible business practices, building on earlier collaborations with development partners including UNDP and FSD Africa.
Discussions at the meeting also covered plans to revive a national catastrophic insurance scheme. The initiative, which would involve NAICOM, UNDP and agencies such as the National Emergency Management Agency (NEMA), is expected to provide broader protection against large-scale disasters and strengthen Nigeria’s resilience to climate shocks.
Both organisations agreed that expanding insurance coverage, improving technical capacity and developing innovative risk solutions are critical steps toward protecting lives, supporting businesses and driving sustainable economic growth in Nigeria.
