Anxiety is rising among policyholders and other stakeholders over the fate of eight insurers yet to be cleared by the National Insurance Commission (NAICOM), a week after the regulator announced the closure of the recapitalisation programme and granted a 14-day grace period to attend to operators who filed for capital validation late.

The regulator said 43 firms had met the new thresholds under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and subsequently issued them new licences.

With about a week left in the extension, there are concerns about the fate of the companies and what will become of their existing policies should they be forced to liquidate.

Nigeria has a poor history of orderly settlement of policyholders of liquidated insurance firms. The panic comes as NAICOM has revoked the operating licence of Nigeria Reinsurance Corporation for failing to meet the statutory minimum capital requirement (MCR).

The insurance regulator appointed Muiz Banire, a senior advocate of Nigeria (SAN), as receiver/provisional liquidator to oversee the company’s liquidation, according to a public notice dated August 4.

Banire’s appointment took effect on August 3, following the cancellation of the corporation’s certificate of registration by the insurance regulator.

There are concerns about continuity of existing policies, class obligations and protections available to customers of operators that could be axed after the window.

While NAICOM’s confirmation of 43 compliant companies has provided some clarity, the pending status of the eight operators has left policyholders seeking reassurance that their existing insurance contracts remain valid and that claims arising during the review period will continue to receive regulatory protection.

For many individuals and businesses, the concern goes beyond the recapitalisation process itself.

Insurance policies are often purchased months or years ahead, in which customers may still have active motor, life, property, health, marine and business covers with companies whose final regulatory status is yet to be determined.

Sadly, exit from an insurance contract is not as swift and straightforward as a bank deposit that could be pulled out in less than one hour.

The concerns highlight one of the most important tests of the post-recapitalisation insurance market: whether the stronger capital base achieved by compliant operators would translate into greater confidence among policyholders.

NAICOM had said the recapitalisation exercise was aimed at building a stronger, more resilient and adequately capitalised industry and boosting market confidence.

The Nigerian Insurers Association (NIA), however, has urged calm, expressing solidarity with the eight companies undergoing final verification while commending NAICOM for what it described as a structured and transparent implementation of the new capital requirements.

The NIA Chairman, Ebelechukwu Nwachukwu, said the completion of the exercise represented a major milestone for the industry, noting that stronger capitalisation would improve the ability of insurers to meet obligations and support large-scale economic activities.

“The successful outcome of the recapitalisation exercise is a major win not just for regulators and operators, but also for policyholders, investors and the wider Nigerian economy,” she said.