The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the Commission’s revised minimum capital requirements, marking a major milestone in the ongoing recapitalisation of Nigeria’s insurance industry.
The presentation of the new licences, which took place at the Commission’s headquarters in Abuja on Tuesday, signals the completion of a critical phase of the recapitalisation programme and the beginning of a new regulatory framework aimed at strengthening the industry’s financial capacity, governance and competitiveness.
Speaking at the ceremony, the Commissioner for Insurance (CFI) described the issuance of the licences as the dawn of a new era for the sector, saying the recapitalisation exercise has laid the foundation for a stronger, more resilient and globally competitive insurance industry.
He said the enhanced capital base of insurance companies should be deployed to drive innovation, develop products that meet evolving customer needs and deepen insurance penetration across the country.
The Commissioner noted that the Commission expects higher standards of professionalism, operational efficiency, innovation and improved returns on investment from operators, adding that the successful completion of the recapitalisation programme positions the industry for the next phase of regulatory reforms.
He disclosed that NAICOM’s next major initiative will be the implementation of a Risk-Based Capital (RBC) framework, under which insurers will be required to maintain capital levels commensurate with the risks inherent in their business portfolios.
According to him, the new framework is expected to strengthen the financial soundness of insurers while promoting a more risk-sensitive regulatory environment.
The Commission also reaffirmed its commitment to removing unnecessary regulatory bottlenecks while maintaining effective oversight and enforcing standards that safeguard policyholders and enhance confidence in the insurance market.
NAICOM said a total of 43 insurance companies declared compliant with the new minimum capital requirements are expected to receive the new licence certificates as part of the phased transition to higher capital standards.
The Commission said the exercise is designed to improve the financial strength, solvency and claims-paying capacity of insurance operators, positioning the industry to better support Nigeria’s economic growth and attract greater investor confidence.
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