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 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, a statement by NAICOM said.

The Guardian reported that a total of 43 insurance companies have been cleared to have met the new capital thresholds.

Omosehin, according to NAICOM, congratulated the successful companies, saying the issuance of the new licences signalled 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.

He said the commission expected 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.

The issuance of the new licence certificates marked 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.

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

Nwachukwu said a 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 said 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 to greater value for policyholders and the Nigerian economy.