Insurers and Pension Funds Urged to Turn Recapitalisation into Better Services

Stakeholders call for better customer outcomes following insurance and pension recapitalisation

Stakeholders in Nigeria’s insurance and pension sectors have urged operators to translate recapitalisation into better customer service, more accessible financial products and stronger protection for policyholders and pension contributors.

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The call came during the 11th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos, where industry representatives discussed how firms should deploy capital raised through recapitalisation. Participants said the reforms should be assessed by their impact on customers and the wider economy, rather than by the size of operators’ capital bases alone.

Stakeholders

Insurers Urged to Develop More Accessible Products

Jacqueline Agweh, Managing Director of SanlamAllianz General Insurance, said the post-recapitalisation period offers insurers an opportunity to develop products that address customers’ specific needs.

She called for simpler onboarding procedures, more user-friendly digital platforms and technology that improves risk assessment and claims processing.

Agweh also advocated greater investment in retail insurance and microinsurance, noting that complicated policy documents and difficult procedures can discourage people from buying cover.

She proposed integrating insurance into everyday commercial transactions, including offering cover when consumers purchase products such as mobile phones.

Making insurance more accessible and relevant, she argued, could help build a stronger insurance culture in Nigeria.

Pension Operators Face Pressure to Protect Contributors

Babalola Rufus, Executive Director of NLPC Pensions, urged operators to ensure that policyholders and Retirement Savings Account holders receive the value expected from their contributions.

He said recapitalisation should strengthen institutions, improve investment decisions, expand participation and increase accountability.

Pension operators must also ensure that contributors’ funds remain secure, are invested appropriately and are available when beneficiaries become eligible to receive them.

Peters Elendu, Managing Director of Zenith Pensions Custodian Limited, represented by Alfred Nkuma, also called for greater investment in technology, artificial intelligence, data analytics and staff development.

Nkuma said pension fund custodians must safeguard assets, diversify investments and maintain sufficient liquidity to meet beneficiaries’ obligations. He added that confidence in the pension system depends on the effective management and availability of workers’ savings.

Stakeholders

Recapitalisation Must Deliver Measurable Results

The conference focused on the next phase of reforms following recapitalisation in the insurance and pension sectors.

Ebere Nwoji, Chairman of NAIPE, said the conference was designed to examine how the capital raised by operators could be deployed prudently to generate sustainable returns, strengthen institutions and improve Nigerians’ long-term financial security.

The discussions highlighted a distinction between meeting capital requirements and using additional financial capacity productively. Stronger balance sheets can provide institutions with greater capacity to invest in technology, improve operations and develop new products, but customers must experience tangible benefits for the reforms to achieve their broader objectives.

For insurers, those benefits include clearer policies, accessible premiums and more efficient claims settlement. For pension operators, they include sound asset management, transparent communication and the timely payment of benefits.

Implications for Housing Finance and Real Estate

Although the conference focused on insurance and pensions rather than housing, the way institutional capital is deployed can affect the wider investment environment.

Pension funds are potential sources of long-term capital for infrastructure and property-related investments, while insurance companies can provide cover for buildings, construction projects and property-related risks.

However, stronger capital positions do not automatically translate into increased housing investment. Any allocation to real estate must satisfy each institution’s regulatory obligations, investment mandate, liquidity requirements and risk-management standards.

For the housing sector, the relevant question is whether recapitalised financial institutions can expand access to appropriate property insurance and responsibly allocate more long-term capital to viable housing and infrastructure projects. The conference did not announce a dedicated housing-finance commitment or a new property-investment programme.

Outlook

The industry’s next challenge is to demonstrate that recapitalisation has improved the financial services available to Nigerians.

For insurance firms, this means making cover easier to understand and purchase while improving claims handling. For pension operators and custodians, it means protecting contributors’ assets, making prudent investments and ensuring beneficiaries receive their entitlements.

The effectiveness of the reforms will ultimately depend on whether stronger institutions deliver better service, accountability and financial outcomes for the people whose money they manage.

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