Key points
- The National Insurance Commission (NAICOM) has presented new licence certificates to insurance companies that met the revised minimum capital requirements.
- NAICOM said the licences mark a new phase of regulation centred on stronger capitalisation, sound corporate governance and product innovation.
- The Commission urged insurers to leverage their enhanced capital base to improve insurance penetration and deliver better returns.
- NAICOM announced that its next major regulatory reform will be the implementation of the Risk-Based Capital (RBC) framework.
- A total of 43 insurance companies declared compliant are expected to receive the new licences.
Main Story
The National Insurance Commission (NAICOM) has presented new operating licence certificates to insurance companies that successfully complied with the Commission’s revised minimum capital requirements, marking a major milestone in the recapitalisation of Nigeria’s insurance industry.
The Commissioner for Insurance, Mr Olusegun Omosehin, disclosed this in a statement issued on Wednesday in Abuja, describing the issuance of the licences as the beginning of a new regulatory era aimed at strengthening the industry’s financial resilience and global competitiveness.
According to Omosehin, the recapitalisation exercise is designed to build stronger insurance companies with improved corporate governance, greater operational efficiency and enhanced capacity to develop innovative products for the Nigerian market.
He urged the newly licensed firms to utilise their stronger capital base to expand insurance coverage, introduce innovative products and improve insurance penetration across the country.
The Commissioner said the Commission expects higher standards of professionalism, innovation, operational excellence and stronger returns on investment from the recapitalised firms.
He explained that the successful completion of the recapitalisation programme would pave the way for the next phase of regulatory reforms, particularly the implementation of the Risk-Based Capital (RBC) framework.
According to him, the RBC framework will align insurers’ capital requirements with the level of risks inherent in their respective business portfolios, thereby strengthening the industry’s financial stability.
Omosehin also reaffirmed NAICOM’s commitment to eliminating unnecessary regulatory bottlenecks while maintaining effective oversight and enforcing standards that safeguard policyholders’ interests.
The News Agency of Nigeria (NAN) reports that 43 insurance companies declared compliant with the new capital requirements are expected to receive their operating licences under the exercise.
The recapitalisation programme is expected to improve the financial capacity, solvency and claims-paying ability of insurance operators, thereby boosting public confidence in Nigeria’s insurance sector.
The Issues
Nigeria’s insurance penetration remains among the lowest in Africa despite the sector’s growth potential.
Stronger capitalisation is expected to improve insurers’ ability to settle claims promptly and withstand financial shocks.
The planned implementation of the Risk-Based Capital framework will require insurers to strengthen risk management and capital adequacy.
Sustained regulatory oversight will be critical to ensuring compliance and protecting policyholders.
What’s Being Said
Mr Olusegun Omosehin, Commissioner for Insurance
“The issuance of the new licences marks a significant milestone in the recapitalisation programme.”
“The development signals the beginning of a new regulatory era focused on stronger capitalisation, improved corporate governance and enhanced product innovation.”
“The successful completion of the recapitalisation programme will position the industry for the next phase of regulatory reform.”
“Our next major regulatory initiative will be the implementation of the Risk-Based Capital framework.”
What’s Next
NAICOM is expected to complete the issuance of licence certificates to all 43 compliant insurance companies before commencing the implementation of the Risk-Based Capital framework.
The Commission will also continue monitoring compliance while encouraging insurers to introduce innovative products, strengthen corporate governance and expand insurance coverage across Nigeria.
Bottom Line
The issuance of new licences to recapitalised insurance companies marks a significant step in strengthening Nigeria’s insurance industry. With stronger capital bases and the planned introduction of risk-based regulation, the sector is expected to become more resilient, financially stable and better positioned to meet policyholders’ expectations.
 has presented new operating licence certificates to insurance companies that successfully...){kind=link}