History was made today as the National Insurance Commission (NAICOM), at its headquarters in Abuja, presented new Licence Certificates to insurance companies that successfully met the Commission’s new minimum capital requirements.
In his opening remarks, the Commissioner for Insurance (CFI) congratulated the successful companies and stated that the issuance of the new licences marks a significant milestone in the recapitalization programme. He noted that the development signals the beginning of a new regulatory era focused on stronger capitalization, improved corporate governance, enhanced product innovation, and the Commission’s broader drive to build a stronger, more resilient, and globally competitive insurance industry in Nigeria.
The Commissioner urged the companies to leverage their enhanced capital base to drive innovation, develop new products, and deepen insurance penetration across the country. He emphasized that the Commission has high expectations for professionalism, innovation, operational efficiency, and improved returns on investment, noting that the successful completion of the recapitalization programme positions the industry for the next phase of regulatory reform.
He further announced that the Commission’s next major regulatory initiative will be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels will be aligned with the risks inherent in their business portfolios.
The Commission reaffirmed its commitment to removing regulatory impediments where appropriate while maintaining robust oversight and enforcing standards that protect policyholders and strengthen market confidence.
A total of 43 insurance companies that were declared compliant with the new capital requirements are expected to receive their new licences from the Commission. The issuance of the certificates marks the commencement of a phased transition to higher capital standards aimed at enhancing the financial capacity, solvency, and claims-paying ability of insurance operators in Nigeria.
