Nigeria’s insurance sector is moving closer to a major financial transformation as the National Insurance Commission (NAICOM) has confirmed that 20 insurance companies have applied for verification under the ongoing industry recapitalisation exercise.
The announcement was made by Olusegun Omosehin, Commissioner for Insurance and Chief Executive Officer of NAICOM, during a media briefing on the Nigerian Insurance Industry Reform Act 2025 (NIIRA) in Lagos.
According to him, the companies have officially written to the commission confirming their readiness and have paid the required verification and processing fees as part of the recapitalisation process.
Recapitalisation Process Already Underway
Omosehin revealed that the verification exercise has already commenced and is being closely monitored to ensure transparency and accuracy.
To guarantee credibility in the process, NAICOM has approved four globally recognised audit firms to oversee the verification of insurance companies:
- PwC
- KPMG
- Deloitte
- Ernst & Young
These firms—commonly referred to as the “Big Four” audit firms—were approved through a public procurement process supervised by the Bureau of Public Procurement.
Omosehin noted that their involvement will ensure the recapitalisation exercise remains transparent, credible, and aligned with international financial standards.
July 31 Compliance Deadline Still Stands
Despite the progress made so far, NAICOM emphasized that the July 31 compliance deadline remains unchanged.
The recapitalisation initiative is driven by the provisions of the Nigerian Insurance Industry Reform Act 2025, which introduced new minimum capital requirements and a risk-based capital framework for the insurance industry.
Under the new structure:
- Life insurance companies: Capital increases from ₦2 billion to ₦10 billion
- Non-life insurance companies: Capital increases from ₦3 billion to ₦15 billion
- Reinsurance companies: Capital increases from ₦10 billion to ₦35 billion
NAICOM says the move is aimed at strengthening the financial capacity, stability, and long-term sustainability of insurance companies operating in Nigeria.
Companies Must Meet Requirements or Face Regulatory Review
Omosehin warned that insurers that fail to meet the new capital requirements may be summoned for discussions with the commission.
These meetings could involve both executive and non-executive directors as regulators seek solutions to ensure compliance before the deadline.
He stressed that the commission’s primary responsibility is to protect policyholders and maintain stability in the insurance sector.
“Our responsibility is to ensure that no policyholder suffers. Their interests will not be compromised,” Omosehin said.
Policyholder Protection Fund Coming Soon
In addition to recapitalisation reforms, NAICOM is also introducing a policyholder protection fund designed to safeguard customers if an insurance company becomes insolvent.
The fund will:
- Settle valid claims of policyholders first
- Recover payments later from the assets of failed insurers
- Ensure shareholders are paid only after policyholder obligations are met
The commission expects the fund to become operational before the end of the first quarter.
Longer Licences for Insurance Intermediaries
NAICOM also announced new registration guidelines for insurance intermediaries, including brokers and loss adjusters.
Under the updated policy, operating licences will now be valid for five years instead of the previous two-year duration, providing more stability for professionals in the industry.
A Major Shift for Nigeria’s Insurance Industry
The recapitalisation drive is widely seen as one of the most significant reforms in Nigeria’s insurance sector in recent years, aimed at building stronger insurers capable of supporting economic growth and protecting millions of policyholders.
With verification already underway and the deadline approaching, industry watchers are closely monitoring how insurers will adapt to the new financial and regulatory landscape.
