As the nation’s insurance industry inches closer to the July 2026 deadline for recapitalization, 20 insurance firms are known to have raised the minimum capital as prescribed by the new insurance Act.
It would be recalled that Nigerian Insurance Industry Reform Act (NIIRA) which came into effect last year gave one year time frame for insurance companies to raise their share capitals as stipulated under the law. Under the new arrangement, life insurance firms are required to raise their minimum share capitals from N2 billion to N10 billion, non life insurance firms are to grow their capitals from N3 billion to N15 billion while reinsurance companies are required to move from N10 billion to N35 billion.
Commissioner for Insurance Mr Olusegun Ayo Omosehin, revealed yesterday that a total of 20 insurance firms have written to NAICOM inviting the commission to come and verify their recapitalisation exercise, an indication that they may have hit their recapitalisation target. There are no fewer than 50 insurance and reinsurance companies in the insurance industry in Nigeria.
Speaking at a stakeholder strategy session on implementation of NIIRA, Mr Omosehin said that NAICOM have consequent upon the receipt of the invitation to verify their new capitals assigned four of the big audit firms in the country to proceed to verify the recapitalization status of the 20 companies which signified their possible compliance with the Act.
“Note that l have not said that 20 insurance firms have met the recapitalization requirements; all that l said is that they have written to us to come and verify them. It is after the verification that NAICOM will be able to make an announcement on this. The commission is optimistic that no policyholder in Nigeria will suffer any loss as a result of the recapitalization exercise. The exercise is going on well” he emphasized.
The Commissioner revealed of efforts by NAICOM to precipitate a stronger insurance market even as he applauded the efforts of companies in meeting stakeholders’ expectations especially in the area of claims payment. Mr Omosehin noted the heavy claims payment which the industry contained with in 2025
According to him, NAICOM will soon establish Policyholder Protection Fund, an initiative which will ensure that policyholders of any insolvent insurance firm will not be denied of the benefits of their policies. Assets of such a companies he said will be deployed to meeting it’s liabilities to policyholders ahead of director’s entitlements.
On strategies for improving the business portfolios of companies, he said that plans are underway with the Ministry of internal Affairs towards ensuring that foreigners entering the country obtain travel insurance policies through the nation’s various embassies abroad as part of conditions for issuance of visa.
He declared the commitment of NAICOM towards the enforcement of the project of linking every insurance policy to customers’ National Identity Numbers (NIN). He gave April end as the commencement date of enforcement of the Know Your Customer (KYC) initiative.
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