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 recapitalisation of Nigeria’s insurance industry.

The new licence certificates were presented by the Commissioner for Insurance and Chief Executive Officer of the Commission, Mr. Olusegun Ayo Omosehin, at the Commission’s headquarters in Abuja, where the he congratulated the compliant companies and described the exercise as the beginning of a new regulatory phase for the sector.

‎Omosehin said the successful completion of the recapitalisation programme would strengthen the industry’s capital base, improve corporate governance, encourage product innovation and support the Commission’s vision of building a more resilient and globally competitive insurance market.

‎The Commissioner urged the companies to deploy their enhanced capital to develop innovative insurance products, expand access to insurance services and improve market penetration across the country. He added that NAICOM expects higher standards of professionalism, operational efficiency and stronger returns on investment from operators.

‎He also announced that the Commission’s next major regulatory reform would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital requirements will be aligned with the level of risk in their respective business portfolios.

According to the Commission, the new framework is designed to strengthen the financial stability of insurance companies while ensuring that policyholders are better protected. NAICOM also reaffirmed its commitment to removing regulatory bottlenecks where necessary while maintaining effective oversight and enforcing industry standards.

A total of 43 insurance companies that complied with the new capital requirements are expected to receive the new licence certificates. NAICOM said the phased issuance of the licences represents a transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance operators in Nigeria.