The Nigerian Insurers Association (NIA) has called on industry stakeholders and regulators to work together to harness the economic potential of the African Continental Free Trade Area (AfCFTA) for the insurance sector’s expansion across Africa.
Chairman of the NIA, Kunle Ahmed, made this appeal during the industry’s quarterly media briefing held in Lagos on Tuesday.
Ahmed emphasized that harmonizing insurance regulations among African nations would reduce operational hurdles, facilitate cross-border service delivery, and enhance the ability of Nigerian insurers to expand into new African markets under the AfCFTA framework.
Unlocking Opportunities Through Regulatory Cooperation
Ahmed urged regulators to embrace greater cooperation in developing a unified legal framework that would streamline insurance operations across multiple jurisdictions.
“Greater cooperation with regulators is essential. A unified legal framework will guide operations across multiple territories, allowing insurers to maximize the benefits of AfCFTA,” he said.
To fully capitalize on AfCFTA, Ahmed advised insurers, brokers, and loss adjusters to study local regulations in different African countries to facilitate compliance and ensure smooth market entry.
Nigeria’s Insurance Industry Prepares for AfCFTA Expansion
Ahmed highlighted that the Nigerian insurance sector is actively preparing to leverage AfCFTA’s benefits, positioning itself as a regional leader in the insurance space.
- He noted that NAICOM (National Insurance Commission) is engaging with African regulators to support cross-border insurance operations.
- As part of this initiative, NAICOM established the NII-AfCFTA Committee in May 2022 to coordinate Nigeria’s strategic approach to the trade pact.
- The committee has conducted several awareness workshops for insurers, brokers, and adjusters, focusing on AfCFTA’s opportunities and challenges.
A key objective of the initiative involves developing tailored insurance products for businesses operating across multiple African markets.
These products include coverage for trade, investments, and multinational operations, aligning with AfCFTA’s Trade in Services Protocol, which promotes regional financial integration.
Strengthening Insurance Capacity and Technological Innovation
Ahmed stated that Nigerian insurers are actively exploring expansion options to set up operations in other African countries, allowing them to directly access new markets.
He also urged Nigerian operators to enhance service quality, professionalism, and customer value to remain competitive continent-wide. The proposed capital increase under the Insurance Reform Bill would make Nigerian insurers among Africa’s best-capitalized, enabling greater risk-taking and accelerated market growth.
What you should know
Highlighting the importance of capacity building, Ahmed stressed that investment in underwriting, claims handling, and risk management will be essential for meeting the demands of a more integrated African insurance market.
- Additionally, he pointed out that digital technology and cybersecurity will be critical for supporting cross-border insurance operations, ensuring seamless transactions and enhanced customer service across different markets.
- With the insurance industry gearing up for regional expansion, Ahmed reaffirmed that AfCFTA presents a transformative opportunity for Nigerian insurers to lead Africa’s financial integration, deepen intra-regional cooperation, and drive economic growth.
