The National Insurance Commission (NAICOM) has pledged regulatory support for the newly unveiled Lagos State Building Insurance Scheme.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, made the pledge on Friday at the official launch of the scheme in Lagos.

Mr Omosehin, represented by the Deputy Commissioner for Insurance, Finance and Administration, Ekerete Ola Gam-Ikon, described the scheme as a major step toward strengthening risk management, consumer protection and insurance penetration in Nigeria.

He said the initiative would help ensure that owners and occupants of buildings were financially protected against losses arising from fire, flood and building collapse.

He noted that recent building collapse incidents underscored the need for compulsory building insurance to protect lives, property and livelihoods.

According to him, insurance serves as a social protection mechanism by enabling individuals, businesses and governments to recover more quickly from disasters.

“The Lagos State Building Insurance Scheme is designed to ensure that when disaster strikes, victims are not left to bear the burden alone.

“On behalf of NAICOM, I make three commitments today. First, we will provide the regulatory backing that this scheme requires, ensuring that every policy issued under it is underwritten by companies licensed and supervised by the commission, and by no one else.

“Second, we will support Lagos State in the fight against fake certificates and unlicensed operators, because a compulsory scheme is only as strong as the integrity of the cover behind it.

“Third, and let me state this very clearly, the commission will support and insist upon a scheme architecture that is open, transparent, competitive, and accessible to all insurance operators duly licensed by NAICOM,” he said.

Mr Omosehin commended the Lagos State Government for adopting technology-driven enforcement through digital platforms and geospatial intelligence.

He said the approach would improve compliance with compulsory insurance provisions.

He explained that the scheme aligned with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which strengthened compulsory insurance, enhanced consumer protection and promoted digital insurance operations.

The NAICOM boss said that the law required public buildings and buildings under construction above a prescribed height to maintain insurance cover to protect property owners, occupants and third parties.

He said Lagos State had taken the lead in translating the national legislation into an enforceable state-level programme, expressing optimism that it would serve as a model for other states.

The commissioner also urged insurance companies to ensure prompt settlement of genuine claims to build public confidence.

He urged property owners to regard insurance as an investment in resilience, calling on developers, brokers, insurance firms and government agencies to support the successful implementation of the scheme.

He expressed confidence that the initiative would improve insurance penetration, enhance public safety and provide a template for similar programmes across the country.

Also, the Chairman of the Nigerian Insurers Association, Ebelechukwu Nwachukwu, commended the Lagos State Government for launching the Lagos State Building Insurance Scheme.

Mrs Nwachukwu described it as a major step toward protecting lives, property and investments.

She stated, “Insurance is not an afterthought following disaster; it is an essential part of building safer communities before disaster occurs.

“Insurance cannot prevent every tragedy, but it can ensure that tragedy does not become permanent hardship.

“Insurance is not a burden placed upon property owners, but a protection extended to them. It is one of the smartest investments anyone can make in safeguarding lives, assets and the future.

Mrs Nwachukwu urged insurers participating in the scheme to uphold professionalism, offer fair underwriting and ensure prompt settlement of genuine claims.

She said the association was ready to work with state governments, regulators and other stakeholders to improve compliance with compulsory insurance and expand access to insurance protection nationwide. 

(NAN)