The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the industry’s new minimum capital requirements, marking the formal beginning of a new regulatory era aimed at strengthening the financial capacity, governance and global competitiveness of Nigeria’s insurance sector.

At a ceremony held at the Commission’s headquarters in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, presented the new licence certificates to compliant operators, describing the exercise as a major milestone in the industry’s recapitalisation programme.

According to the Commission, a total of 43 insurance companies declared compliant with the new capital requirements are expected to receive the new licence certificates in phases.

Omosehin congratulated the successful companies, saying the issuance of the new licences signals the beginning of a stronger regulatory framework anchored on improved capitalisation, sound corporate governance, innovation and sustainable growth.

He urged operators to leverage their enhanced capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.
The Commissioner said the Commission expects the recapitalised companies to deliver stronger financial performance while maintaining high standards of professionalism and customer service.

He also announced that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels would be aligned with the risks inherent in their respective business portfolios.

According to him, the new framework will further strengthen the industry’s resilience by ensuring that insurers maintain capital commensurate with the risks they underwrite, thereby enhancing policyholder protection and boosting market confidence.
Omosehin reaffirmed the Commission’s commitment to removing regulatory impediments where necessary while maintaining effective oversight to safeguard policyholders and strengthen confidence in the insurance market.
The issuance of the new licence certificates marks the commencement of a phased transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance companies operating in Nigeria.

Reacting to the development, the Chairman of the Nigerian Insurers Association, Ebelechukwu Nwachukwu, described the issuance of the new licence certificates as a defining moment for the insurance industry, saying the successful completion of the recapitalisation exercise demonstrates operators’ commitment to building stronger and more resilient institutions capable of supporting Nigeria’s economic growth.

Nwachukwu said the stronger capital base would enable insurers to underwrite larger and more complex risks, improve claims-paying capacity, invest more in technology and product innovation, and enhance public confidence in insurance. She added that the industry would continue to work closely with NAICOM to deepen insurance penetration, improve service delivery and ensure that the gains of the recapitalisation exercise translate into greater value for policyholders and the Nigerian economy.

The successful completion of the recapitalisation programme and the planned implementation of the Risk-Based Capital framework are expected to usher in a new phase of growth for Nigeria’s insurance industry by strengthening operators’ balance sheets, promoting innovation, encouraging prudent risk management and enhancing the sector’s ability to compete with leading insurance markets across Africa.