The National Insurance Commission (NAICOM) has raised the minimum capital requirement for national microinsurance operators to N3 billion, a move aimed at accelerating insurance penetration among the low-income population.

The new threshold, outlined in the commission’s 2026 licensing guidelines released on their website, marks a sharp increase from the previous regime, where capital requirements ranged from N40 million for unit operators to N600 million for national players.

Under the revised framework, operators seeking a national micro insurance licence must meet the N3 billion benchmark to operate across 36 states and the Federal Capital Territory (FCT), offering low-premium, simplified insurance products tailored to underserved and informal markets.

NAICOM said the policy was designed to ensure operators have the financial capacity to meet obligations, particularly claims settlement, while supporting broader financial inclusion goals.

The Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, described the move as a necessary step toward building a more resilient and credible micro insurance market.

Ahmed noted that weak capitalisation had limited the ability of operators to scale and build trust, adding that stronger capital buffers would enhance claims paying and improve public confidence.

“Microinsurance is critical to deepening penetration, but it must be built on a solid financial foundation. Adequate capital will ensure operators can deliver on their promises and expand sustainably,” he said.

An insurance expert, Kelvin Owok, who spoke on the new initiative, said the recapitalisation could trigger consolidation within the segment as smaller operators may be compelled to merge or scale operations to meet the new threshold.

“The emphasis is on trust and solvency. With stronger capital, microinsurance can invest in innovation, expand distribution and settle claims more efficiently, which are critical to winning over the informal sector,” he said.