NAICOM, NIA back Lagos Building Insurance Scheme

The National Insurance Commission has thrown its weight behind the newly launched Lagos State Building Insurance Scheme, pledging to provide the regulatory framework needed for its effective implementation.

Speaking at the official unveiling of the initiative in Lagos, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, described the programme as a significant milestone in improving insurance penetration, strengthening consumer protection and enhancing risk management across Nigeria. According to the News Agency of Nigeria, he was represented at the event by the Deputy Commissioner for Insurance, Finance and Administration, Ekerete Gam-Ikon.

Omosehin said the scheme would provide financial protection for owners and occupants of buildings against losses caused by fire, flooding and structural collapse. He said the increasing incidence of building failures in different parts of the country has highlighted the urgent need to enforce compulsory building insurance to safeguard lives, property and livelihoods.

He noted that insurance plays a critical role in helping individuals, businesses and governments recover quickly after disasters, reducing the financial burden that often follows such incidents.

The NAICOM chief announced three major commitments by the commission to support the Lagos initiative. He said the regulator would ensure that every policy issued under the scheme is underwritten only by insurance companies licensed by NAICOM. He also pledged collaboration with the Lagos State Government to eliminate fake insurance certificates and unlicensed operators, while insisting that the scheme remains transparent, competitive and accessible to all qualified insurers.

Omosehin also praised the Lagos State Government for deploying technology-driven enforcement mechanisms, including digital platforms and geospatial intelligence, to improve compliance with compulsory insurance requirements. He noted that the strategy would strengthen monitoring and enforcement of the scheme.

According to him, the Lagos initiative is consistent with the provisions of the Nigerian Insurance Industry Reform Act 2025, which reinforces compulsory insurance, enhances consumer protection and promotes digital insurance services. He explained that the legislation requires public buildings and buildings under construction above specified heights to maintain insurance cover for the benefit of owners, occupants and third parties.

He said Lagos had become the first state to effectively translate the national law into an operational state programme, expressing optimism that the model would encourage other states to adopt similar initiatives.

The insurance regulator further urged insurance companies to settle genuine claims promptly in order to strengthen public confidence in the industry. He also encouraged property owners to view insurance as a long-term investment in resilience, while calling on developers, brokers, insurers and relevant government agencies to support the successful implementation of the scheme.

Omosehin expressed confidence that the programme would deepen insurance penetration, improve public safety and serve as a benchmark for similar compulsory insurance initiatives across Nigeria.

Also speaking at the launch, the Chairman of the Nigerian Insurers Association, Ebelechukwu Nwachukwu, applauded the Lagos State Government for introducing the Building Insurance Scheme, describing it as a major step towards protecting lives, investments and property.

She stressed that insurance should be regarded as a proactive safety measure rather than a response after disasters occur, noting that while insurance may not prevent accidents, it helps ensure that affected individuals do not suffer permanent financial hardship.

Nwachukwu said insurance should not be seen as an additional burden on property owners but as a valuable safeguard for their assets and future.