… Assures policyholders on safety of policies, investments
Nation’s Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM) Me Olusegun Ayo Omosehin have urged insurance companies in the country to put more life into their recapitalization projects saying that the current pace of activities towards compliance with minimum share capitalization requirement is rather very slow. The Commission was said expressed deep concern that three months to the June 2026 deadline for recapitalization only 20 insurance firms have invited NAICOM for verification of their capital base.
Ebelechukwu Nwachukwu, chairman, Communications & Stakeholders Engagement Sub-Committee of the Nigerian Insurers Committee who spoke to newsmen shortly after NAICOM’s meeting with chief executives of insurance companies in Lagos at the weekend informed that the Commissioner would rather want an up scaling of activities towards meeting up with the new minimum capital as prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) which was signed into law by president Bola Tinubu in June of last year. The law gave companies one year from the coming into effect of the law to increase their minimum paid up capital. Life insurance firms are required to provide a minimum capital of N10 billion, general insurance companies would need N15 billion while reinsurance firms need N35 billion.
Ebelechukwu Nwachukwu revealed that Mr Omosehin had encouraged insurance companies to explore multiple options in ensuring their recertification including negotiating mergers and acquisitions. NAICOM she informed had assured that no stakeholder would suffer any loss as the result of the recapitalization exercise
According to her, Nigeria’s insurance industry is positioning for a new phase of growth as the regulator pushes stronger claims settlement, mandatory insurance bonds for government contracts, and wider market expansion across key sectors. This came as NAICOM urged operators to sustain prompt claims payments while preparing to tap emerging opportunities in government contract bonds, health protection insurance, and other underdeveloped segments of the market.
Nwachukwu disclosed that the commissioner for Insurance also highlighted several growth opportunities for insurers, particularly in government contracts, health insurance, bancassurance, and specialised sectors.
One of the major opportunities stems from collaboration between NAICOM and the Bureau of Public Procurement (BPP) which will make insurance bonds mandatory for government contracts.
Under the arrangement, contractors bidding for government projects will be required to provide insurance-backed bonds such as bid bonds and advance payment guarantees.
“The Commissioner highlighted his meeting with the Bureau of Public Procurement where an agreement was reached that insurance bonds would become a key requirement for government contracts,” Nwachukwu explained.
“This means that contractors bidding for government tenders will be required to obtain insurance bonds, creating a significant opportunity for insurers to generate additional premiums while supporting government economic activities.”
NAICOM will establish eligibility criteria for insurers that can issue such bonds, with solvency expected to be one of the key requirements.
The Commissioner also urged insurers to strengthen their internal processes to ensure seamless bond issuance and efficient claims payment where necessary.
Another major opportunity identified by the regulator lies in the protection segment of health insurance, which remains largely underdeveloped in Nigeria.
While the health sector is currently dominated by Health Maintenance Organisations (HMOs), the Commissioner encouraged insurers to develop protection-based health insurance products and partnerships.
“He noted that the protection side of health insurance is still significantly underdeveloped and presents a strong opportunity for insurers to deepen insurance penetration in the country,” Nwachukwu said.
