Get Guardian on GoogleThe National Insurance Commission (NAICOM) is setting its eyes on strengthening the capital base of Takaful and microinsurance operators in the next phase of recapitalisation.
The move is designed to enhance liquidity and claims capital for firms serving low-income and informal-sector workers nationwide.
The commission is currently assessing the adequacy of capital requirements in the Takaful and microinsurance segments to ensure that the operators can effectively manage the risks they underwrite.
According to NAICOM, the forthcoming capital review will align with the evolving dynamics of the insurance market while supporting the goal of deepening financial inclusion.
Speaking at a seminar organised for insurance journalists in Abeokuta, Ogun state, the Commissioner for Insurance, Olusegun Omosehin, confirmed that the regulator is considering a recapitalisation framework for Takaful and microinsurance firms.
This is expected to commence as soon as the ongoing exercise for conventional players concludes.
“We are indeed considering recapitalisation for Takaful and microinsurance outfits, given the changes in the business environment and the rising cost of asset replacement. Operators must be sufficiently capitalised and liquid to underwrite grassroots risks effectively,” he said.
He explained that the commission is taking a phased approach to avoid overstretching operators while ensuring every segment of the market is adequately equipped to deliver on its mandate.
The planned upgrade, he said, would help to stabilise the informal-sector segment, where many operators provide low-cost and inclusive insurance solutions.
Highlighting reforms already undertaken, Omosehin said NAICOM has promoted the growth of microinsurance, Takaful, InsurTech and web aggregators to foster innovation and expand access to affordable protection.
Through the efforts, he said, the commission aims to reach millions of Nigerians who remain uninsured despite being vulnerable to daily economic and social risks.
“To increase penetration, insurance must be present in high-impact sectors, such as transport, agriculture, MSMEs, and digital marketplaces,” he added.
