The National Insurance Commission (NAICOM) has concluded the verification of five more companies that have met the new minimum capital requirements, bringing the sector closer to a new market structure under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The five companies include Regency Alliance Insurance Plc, Sovereign Trust Insurance Plc, Tangerine Life Insurance Nigeria Limited, emPLE Life Assurance Limited and emPLE General Insurance Limited.

The firms have successfully passed the commission’s final verification exercise and are expected to be formally listed among operators that complied with the new capital regime.

Their expected clearance comes as NAICOM winds down verification of eight insurers that submitted evidence of compliance shortly before the July 31, 2026 deadline.

The development means that five out of the eight companies placed under final regulatory scrutiny have now crossed the hurdle, leaving three operators awaiting the commission’s decision as stakeholders anticipate an updated list of licensed insurance companies.

The exercise is gradually separating operators that have secured the financial capacity to continue under the new regime from those whose future in the market remains uncertain.

It is also a signal of the end of one of the most consequential phases of Nigeria’s insurance industry reform in recent years, with higher capital requirements expected to produce stronger balance sheets, greater risk-bearing capacity and, potentially, fewer but more competitive operators.

NAICOM had on July 31 announced that 43 insurance companies had been verified as compliant with the new capital requirements under NIIRA 2025 and other applicable laws and guidelines.

The commission disclosed that eight companies that submitted evidence of compliance close to the deadline were undergoing final verification and regulatory review, which was expected to be completed within 14 days.

The latest development effectively puts the recapitalisation exercise on its final regulatory lap, with attention now shifting from how much capital insurers have raised to what the new capital base will enable them to do.

For the industry, the bigger test will be whether the exercise translates to stronger underwriting capacity, improved claims settlement, deeper investments in technology and distribution as well as greater ability to retain risks that are currently ceded to foreign reinsurers.

Industry stakeholders have consistently argued that recapitalisation should not be an end in itself, but should strengthen the capacity of insurers to provide meaningful protection to households and businesses while mobilising long-term funds for economic development.

The expected clearance of the five companies is likely to intensify competition for premiums, particularly in the corporate and commercial insurance segment where balance-sheet strength is critical to underwriting large and technically complex risks.

Guinea Insurance Plc, another company among those undergoing final verification, had announced that it exceeded the N15 billion minimum capital requirement for non-life insurers through a hybrid capital-raising exercise. Its formal status is expected to depend on the completion of NAICOM’s verification.

Also awaiting regulatory resolution are African Alliance Insurance Plc and A&G Insurance Company Limited.

African Alliance is undergoing verification against the background of a regulatory intervention that commenced in October 2024. In June 2026, NAICOM transferred operational control of the company to a newly-constituted board nominated by its shareholders following the conclusion of the intervention.

A&G Insurance, which was not included in NAICOM’s initial list of compliant companies, had notified the Commission before the deadline that it had satisfied the recapitalisation requirements.

The position of the Nigerian Agricultural Insurance Corporation (NAIC) remains distinct because of its ownership structure. As a wholly Federal Government-owned institution and the only non-private underwriter in the sector, its operating licence and regulatory status are expected to be fulfilled by the government and communicated to NAICOM.

Meanwhile, NAICOM has already demonstrated that operators that fail to meet the new capital requirements face regulatory consequences.

The commission withdrew the operating licence of Nigeria Reinsurance Corporation after it failed to satisfy the statutory minimum capital requirement, paving the way for liquidation.

The action has strengthened expectations that the recapitalisation exercise will result in a smaller, financially stronger and more closely regulated insurance market.

Beyond satisfying regulatory requirements, operators will need to generate profitable premium growth, improve risk management, strengthen claims administration and invest in digital channels capable of taking insurance to a wider segment of Nigerians.

NAICOM has temporarily removed the list of licensed insurance companies from its website, with an updated register expected when the outstanding verification exercises are completed.