NIA Seeks Regulatory Harmony For Africa’s Insurance Industry

The Nigerian Insurers Association (NIA) has urged greater collaboration among African insurance regulators and industry stakeholders to harmonise regulatory frameworks and fully unlock the potential of the African Continental Free Trade Area (AfCFTA) for the continent’s insurance industry.

Speaking during the NIA’s quarterly briefing, the association’s Chairman, Mr Kunle Ahmed, called for urgent alignment of legal and regulatory frameworks to facilitate seamless cross-border insurance operations and strengthen the competitiveness of Nigerian insurers across African markets.

“Greater cooperation with regulators is essential. A unified legal framework will guide operations across multiple territories, allowing insurers to maximise the benefits of AfCFTA,” Ahmed stated.

He emphasised that by removing regulatory bottlenecks and aligning industry standards across member countries, African insurers—especially Nigerian players—would be better positioned to expand their reach, develop new products tailored for regional markets, and contribute more significantly to intra-African trade and investment.

AfCFTA, which officially came into force in 2021, is the world’s largest free trade area by number of countries, aimed at boosting trade integration across 55 African nations.

For the insurance sector, this presents an opportunity to support and underwrite growing cross-border commerce, logistics, and investment activities.

Ahmed called on insurers, brokers, and loss adjusters to proactively study the legal frameworks of other African jurisdictions to ensure compliance and position themselves effectively for market entry.

“The onus is also on insurance operators to prepare themselves. Understanding local regulations and tailoring products to local needs is key to success under AfCFTA,” he added.

He noted that the Nigerian insurance industry is already taking steps to prepare for this continental shift. The National Insurance Commission (NAICOM) has been actively engaging with African regulatory bodies to foster cross-border cooperation.

In May 2022, NAICOM established the NII-AfCFTA Committee, tasked with coordinating Nigeria’s strategic response to the trade agreement.

The committee has since held a series of workshops to educate stakeholders on the opportunities and challenges presented by AfCFTA, while encouraging innovation in product development and operational practices.

One of the committee’s goals is to promote the creation of tailored insurance products for businesses operating across multiple African markets.

These products include trade credit insurance, investment protection, and coverage for multinational operations—all aligned with the AfCFTA Trade in Services Protocol, which aims to deepen regional financial and economic integration.

Ahmed also stressed the need for Nigerian insurers to improve service quality, professionalism, and customer value in order to remain competitive in a more open and integrated African market. He said upcoming reforms, including the proposed Insurance Reform Bill, would increase capital thresholds for insurers, enabling them to underwrite bigger risks and expand faster across the continent.

“The proposed capital increase will make Nigerian insurers some of the best-capitalised in Africa. This is essential if we are to lead regional growth and become key players in continental risk management,” Ahmed said.

As AfCFTA continues to gain momentum, industry leaders are optimistic that with the right regulatory environment and strategic investment, the Nigerian insurance sector can emerge as a continental powerhouse, providing vital financial protection and services across Africa’s evolving economic landscape.

NIA Seeks Regulatory Harmony For Africa’s Insurance Industry is first published on The Whistler Newspaper