Twenty insurers step up for NAICOM recapitalisation checks

As part of the ongoing recapitalisation in the insurance industry, 20 companies have submitted themselves for verification, according to the National Insurance Commission (NAICOM).

To ensure transparency of the exercise, NAICOM has engaged global professional firms including PricewaterhouseCoopers, KPMG, Deloitte and Ernst & Young to verify their recapitalisation status, and this will be concluded by end of the month.

Olusegun Omosehin, commissioner for Insurance/CEO of NAICOM made the disclosure during a Media Interaction with Journalists in Lagos.

Omosehin said the recapitalisation exercise is being transparently handled in a manner that guarantees protection of consumers.

“Companies whose recapitalisation activities we have not seen may be invited for a meeting by the end of the month,” he said. “The meeting will allow us to understand their plans and also make it clear what consequences they may face if they fail to meet the stipulated deadline.”

He said the Commission is not going to compromise the protection of policyholders, and assured that nothing will be left undone to ensure that the exercise is credible.

On signing of insurance Industry Reform Act (NIIRA) 2025, Insurance Companies in Nigeria were given up 30th July 2026 to increase their minimum capital requirement or lose their operating license.

In the new capital requirement, General insurance companies capital was moved from initial N3 billion to N15 billion; Life insurance companies N2 billion to N10 billion; and N5 billion to N25 billion for Composite Insurance companies; while reinsurers capital was moved from N10 billion to N35 billion.

Speaking at the parley, Omosehin outlined key reforms aimed at strengthening Nigeria’s insurance industry through improved regulation, stronger governance and enhanced consumer protection.

Omosehin said the reform programme is anchored on the Insurance Reform Act (NIRA) 2025, which provides the legal and regulatory framework for the transformation of the sector. According to him, the law is designed to reposition the insurance industry to support economic growth and align with the broader economic vision of Bola Ahmed Tinubu.

He said the Commission’s focus is now on disciplined execution of reforms, particularly in strengthening the financial soundness of insurance companies, protecting policyholders and improving governance and compliance across the industry.

As part of the implementation strategy, NAICOM has set up a NIRA Implementation Working Group to drive reforms in key areas such as compulsory insurance, digitalisation and financial inclusion, while also strengthening collaboration with regulators including the Securities and Exchange Commission, Corporate Affairs Commission, National Pension Commission and the Central Bank of Nigeria.

Omosehin said NAICOM has also partnered with the Bureau of Public Procurement to integrate insurance bonds into government procurement processes, a move expected to expand opportunities for insurers through instruments such as bid bonds, performance bonds and advance payment guarantees.

To strengthen consumer protection, the Commission has commenced work on establishing an Insurance Policyholders Protection Fund that will serve as a safety net to compensate policyholders in the event of the failure of an insurance company.

In addition, the regulator has introduced stricter Know Your Customer (KYC) requirements, mandating that all insurance policies be linked to the National Identification Number (NIN) by end of April 2026. This will help improve transparency, reduce fraud and align the sector with national anti-money laundering standards, he said.

Omosehin noted that rebuilding confidence in the insurance industry remains a priority, stressing that NAICOM will continue to enforce reforms aimed at improving claims settlement; strengthening governance and ensuring that policyholders’ interests are protected. He added that the Commission is committed to maintaining transparency and consistent regulation in order to attract investment and position the industry for sustainable growth.