By LOVETH-AZODO CHIJIOKE, Lagos
Nigeria’s insurance industry formally entered a new regulatory era as the National Insurance Commission (NAICOM) commenced the issuance of fresh operating licence certificates to insurance companies.
These companies have successfully met the new minimum capital requirements under the recapitalisation programme, with 43 operators making the Commission’s first verified compliance list.
However, while the exercise confirms a major restructuring of the industry’s capital base, questions remain over the status of 15 licensed operators that did not appear on the Commission’s initial verification list.
A check by optimumtimes.com also showed that NAICOM has updated its official website to reflect the outcome of the recapitalisation exercise.
While the Commission previously listed 58 licensed insurance and reinsurance operators comprising 29 general insurers, 14 life insurers, 12 composite insurers and three reinsurers the register now contains only 43 operators, made up of 41 insurance companies and two reinsurers that have been issued fresh licences.
The update follows the commencement of the issuance of new operating licences to companies that met the new minimum capital requirements.
Interestingly, NAICOM’s statement disclosed that only eight insurance companies are currently undergoing final verification, leaving the status of seven other licensed operators unexplained.
The development was contained in a statement released by the commission, following the presentation of new operating licence certificates to compliant companies at the Commission’s headquarters in Abuja.
Presenting the certificates, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, described the issuance of the new licences as a major milestone in the recapitalisation programme, saying it marks the beginning of a new regulatory era anchored on stronger capitalisation, improved corporate governance, enhanced product innovation and a more resilient insurance market.
According to him, the successful completion of the recapitalisation exercise has positioned the industry for a new phase of growth and regulatory reforms aimed at building a stronger and globally competitive insurance sector.
He urged the recapitalised companies to leverage their stronger capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.
Omosehin also said the Commission expects operators to demonstrate greater professionalism, innovation and stronger returns on investment as the industry enters its next phase of development.
He disclosed that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers will be required to maintain capital levels that reflect the risks inherent in their respective underwriting portfolios.
According to him, the framework is expected to further strengthen the financial soundness of operators while aligning Nigeria’s insurance regulatory regime with international best practices.
The Commissioner also reaffirmed the Commission’s commitment to eliminating regulatory bottlenecks where necessary, while sustaining effective oversight and enforcing standards that protect policyholders and strengthen confidence in the insurance market.
According to the statement, the issuance of the new licence certificates marks the commencement of a phased transition to the new capital regime, which is designed to improve operators’ financial capacity, solvency and claims-paying ability.
The Commission said the recapitalisation exercise represents a major milestone in its broader reform agenda to reposition Nigeria’s insurance industry for sustainable growth, stronger governance and improved service delivery.
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