Chukwuemeka Akwiwu, Executive Director (Technical) at Continental Reinsurance Plc, has called on insurance companies to prioritise sound governance practices to ensure effective utilisation of the new capital being raised across the industry.
Akwiwu made this call during the annual retreat of the Risk, Audit, and Compliance Committee — a key technical body under the Nigerian Insurers Association — held in Abeokuta, Ogun State.
His remarks come in the wake of the recently enacted Nigerian Insurance Industry Reform Act 2025, which sets new capital benchmarks for insurers. Among its major reforms is the adoption of a risk-based capital (RBC) framework, requiring insurance firms to align their capital reserves with the actual risk exposures they face, including insurance, credit, market, and operational risks.
Under the updated capital thresholds:
- Non-life insurance minimum capital has increased from ₦10 billion to ₦25 billion (or an RBC equivalent determined by NAICOM),
- Life insurance now requires a minimum of ₦15 billion, up from ₦8 billion,
- Reinsurance companies must now meet a threshold of ₦35 billion, compared to the previous ₦20 billion.
Speaking on the theme, “Insurance Industry Recapitalisation: Strengthening Governance Activities for Maximum Benefits,” Akwiwu stressed that while capital enhances underwriting capacity and financial resilience, it is governance that ensures the capital is used strategically and sustainably.
“With increased capital, insurers now have greater capacity to absorb and underwrite larger risks. But that capacity must be matched with accountability. Governance structures must guide how we assess, price, and manage those risks,” he said.
Akwiwu noted that capital, though vital, is not self-sustaining. Without strong oversight, it can be quickly eroded. “Capital is transient by nature. It doesn’t remain where there is mismanagement or weak controls. Good governance acts as a stabiliser — it protects and amplifies the value of capital,” he added.
He encouraged insurance firms to move beyond simply meeting regulatory requirements and instead embed risk management and ethical leadership at every operational level.
“This new phase cannot be approached with an old mindset,” he warned. “Every stakeholder — from board members to frontline staff — must embrace a culture where compliance and governance are proactive, not reactive.”
Akwiwu also underscored the importance of board effectiveness, urging insurers to review their board compositions, identify gaps in expertise, and prioritise merit over personal affiliations when appointing directors.
“Board seats should no longer be rewards for connections. Directors must bring tangible value, technical knowledge, and a strong sense of accountability,” he asserted.
Looking ahead, Akwiwu expressed optimism about the trajectory of Nigeria’s insurance industry, particularly its potential to contribute meaningfully to the national goal of achieving a $1 trillion economy.
“A well-capitalised sector, backed by robust governance, will not only strengthen the financial foundations of our companies but also build public confidence in insurance products. This is essential for achieving broader market penetration and long-term industry growth,” he concluded.