If you have an insurance policy with Universal Insurance Plc, the cancellation of the company’s licence raises a much more immediate question than what it means for Nigeria’s insurance industry: What happens to your policy and any claim you have already made?
The National Insurance Commission (NAICOM) cancelled Universal Insurance’s certificate of registration on August 14 after the insurer failed to meet the minimum capital requirement for its licence category under the Nigerian Insurance Industry Reform Act 2025.
NAICOM has appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as receiver/provisional liquidator to take charge of the company’s affairs.
That does not mean policyholders should assume that every existing policy has suddenly become worthless. But it does mean that Universal can no longer operate as it did before the cancellation, and policyholders now have to deal with a regulatory and liquidation process.
Here is what the cancellation means for people who have policies, pending claims or money tied up with Universal Insurance.
Has my Universal Insurance policy been cancelled?
Not necessarily.
NAICOM’s cancellation of Universal Insurance’s certificate means the insurer can no longer continue ordinary insurance business as a licensed operator. Under the NIIRA 2025, when an insurer’s licence is cancelled, it must immediately stop accepting new business. NAICOM may also act as receiver or appoint another person to act on its behalf.
The law, however, does not say that every existing policy simply disappears the moment a licence is cancelled.
That distinction matters.
If your policy was already in force when NAICOM cancelled Universal’s registration, you should not assume either that you are fully covered or that you have automatically lost your rights. The status of the particular policy, including its remaining period and obligations, needs to be established through the receiver/provisional liquidator and the applicable terms of the policy.
In practical terms, policyholders should not simply continue dealing with former Universal management or assume that the old arrangements for renewals, claims or payments remain unchanged.
Can I still renew my Universal Insurance policy?
The safe answer is no, not as ordinary new business with Universal while its licence remains cancelled.
The NIIRA 2025 expressly provides that once an insurer’s licence is cancelled, the insurer shall immediately discontinue accepting new business.
That is important for anyone whose Universal policy is approaching its expiry date.
Do not hand over a renewal premium to someone simply because you previously dealt with the person or because they claim to still represent Universal. The cancellation has changed who has authority over the company’s affairs.
If you need continuous insurance cover, speak to the receiver or NAICOM about the status of your existing policy and make arrangements for replacement cover with a currently licensed insurer where necessary.
What happens if Universal Insurance already owes me a claim?
This is where the situation becomes more complicated.
A licence cancellation does not erase an insurer’s outstanding obligations to policyholders. Under the NIIRA 2025, a receiver or provisional liquidator appointed after the cancellation is responsible for taking charge of the insurer’s assets, gathering assets due to the company and administering them for the benefit of policyholders, clients and creditors.
The law also gives policyholders priority in the order for settling debts of a failed insurer being wound up, after liquidation fees and expenses and before secured creditors, other creditors, staff, shareholders and directors.
But there is an important distinction between having a complaint or reported loss and having an admitted claim.
The Nigerian Insurance Industry Reform Act created the Insurance Policyholders Protection Fund (IPPF) to help resolve insurer distress and insolvency and, specifically, to facilitate payment of claims that have been admitted by or allowed against an insurer but remain unpaid because of insolvency or cancellation of its licence.
So, if Universal owes you money on a claim that has already been admitted, there is now a statutory protection mechanism relevant to that situation.
That does not mean every claim will automatically be paid immediately or in full.
Claims still have to be established and processed according to the applicable rules. The receiver will have to determine the company’s obligations, realise available assets and administer the process, while the IPPF provides an additional mechanism for qualifying admitted claims affected by the insurer’s failure.
What if I reported a claim but Universal had not approved it?
This is different from an admitted claim.
If you reported an accident, fire, theft or another insured event but Universal had not yet accepted the claim before its licence was cancelled, you should preserve every document connected with the claim.
That includes your policy document, premium receipts, claim form, correspondence with Universal, photographs, police reports where applicable, estimates, invoices and any other evidence relating to the loss.
The reason is simple: the receiver needs to be able to establish what Universal owed and whether the claim falls within the policy.
The existence of the IPPF should not be interpreted as a guarantee that every reported claim will automatically qualify. The Act specifically refers to claims admitted by or allowed against an insurer that remain unpaid because of insolvency or licence cancellation.
What happens to premiums I have already paid?
Paying your premium before the licence cancellation does not mean the money simply disappears.
But it also does not mean every policyholder is automatically entitled to an immediate refund of the entire premium.
The treatment of premiums will depend on the circumstances of the policy, including whether the cover had already begun, how much of the policy period remained and what obligations arose under the contract.
This is one area where policyholders should seek clarification from the receiver rather than rely on assumptions or social media claims.
If you paid for a policy recently, keep proof of payment and your policy schedule. If you paid through an agent or broker, retain those records as well.
Who is now in charge of Universal Insurance?
NAICOM has appointed Ogbonna Chukwumerije of Pinheiro LP as receiver/provisional liquidator.
The appointment is significant because the receiver is now responsible for overseeing the company’s affairs and protecting its assets during the process.
The receiver has also informed policyholders, creditors, debtors, banks and other stakeholders that he has assumed the role. He directed parties holding Universal’s money, assets, records, policies or claims to cooperate with the process and provide information when required.
This means policyholders should be particularly careful about anyone who continues to solicit payments or issue instructions in Universal’s name without demonstrating that they have authority under the new arrangement.
What happens to Universal Insurance’s assets?
The assets are important because they form part of the pool from which the company’s obligations can be addressed.
The NIIRA 2025 empowers a receiver or provisional liquidator appointed after licence cancellation to take charge of the insurer’s assets and collect assets owed to it. The receiver may also take control of the company’s management and accounts as provided under the law.
The objective is not simply to close the company and walk away from its obligations. The process is intended to preserve and realise value for those to whom the insurer owes money.
The law places policyholders high in the statutory order of priority when a failed insurer is being wound up.
What should Universal policyholders do now?
The most important thing is do not ignore the cancellation and do not assume that your policy or claim will be handled exactly as before.
If you have an active policy, find out its current status.
If you have a pending claim, make sure the claim and all supporting documents are properly recorded with the receiver.
If Universal owes you money, preserve evidence of the debt.
And if your policy is approaching renewal, do not simply pay another premium to an individual or account because that is how you previously renewed your policy.
Policyholders should deal with NAICOM and the duly appointed receiver on matters concerning Universal’s affairs.
Does Universal’s ₦7.12 billion capital raise change anything?
Universal Insurance had been pursuing a capital injection shortly before NAICOM cancelled its registration.
On August 14, the company disclosed a binding investment agreement under which FPNG Co-Nvest Limited would invest about ₦7.128 billion through a private placement, potentially giving FPNG a 50.1 per cent stake in Universal. The proposed transaction was intended to help the insurer meet the recapitalisation requirement, but the company said it still required engagement with NAICOM and other regulators.
That is important context, but the existence of the proposed investment did not prevent NAICOM from cancelling the registration.
For policyholders, the practical point is that a proposed capital injection should not be treated as though it had already restored Universal’s licence. As of the cancellation, the regulatory action remains the operative position.
Is there now protection for policyholders if an insurer fails?
Yes. This is one of the significant changes introduced by the NIIRA 2025.
The law established the Insurance Policyholders Protection Fund, which is intended to address distress and insolvency among licensed insurers and reinsurers and facilitate payment of admitted claims that remain unpaid because of insolvency or licence cancellation.
NAICOM subsequently issued guidelines for the fund in April 2026. The framework requires insurers and reinsurers to contribute to the fund and establishes how it is to be managed and deployed.
This means Universal’s policyholders are entering a different regulatory environment from one in which there was no dedicated statutory mechanism for dealing with admitted claims following an insurer’s collapse.
But the fund should not be confused with an automatic, unlimited insurance payout. The protection framework operates according to the Act and NAICOM’s guidelines, and claims must meet the relevant requirements.
The bottom line
If you have a Universal Insurance policy, do not assume that NAICOM’s cancellation means your policy or claim has automatically vanished. But do not assume that everything continues as normal either.
Universal can no longer accept new business following the licence cancellation. Its affairs are now under the control of the receiver/provisional liquidator, who is responsible for managing the company’s assets and obligations.
For policyholders with outstanding claims, the most important distinction is whether the claim has been admitted. The NIIRA 2025 provides for an Insurance Policyholders Protection Fund that can be used to address admitted claims left unpaid because of an insurer’s insolvency or licence cancellation.
For now, policyholders should preserve their policy and payment documents, properly document any outstanding claims and deal with the duly appointed receiver or NAICOM rather than relying on former company representatives.
The cancellation is therefore not the end of the story for Universal’s policyholders. It is the beginning of a regulatory process in which the central questions are now how the company’s assets will be managed, how claims will be verified and admitted, and how qualifying policyholders will ultimately be paid.
