The National Insurance Commission (NAICOM) has successfully completed its 12-month insurance sector recapitalisation exercise, with 43 insurance and reinsurance companies meeting the new capital thresholds.

The commission disclosed that eight other insurance companies, which submitted their compliance documents just before the statutory deadline, are currently undergoing final verification. This pending verification process will be concluded within 14 days.

Implementation of the Insurance Reform Act

The recapitalisation exercise was conducted in line with Section 15 and other provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. President Bola Ahmed Tinubu signed the bill into law on July 31, 2025, initiating the structured transition.

To guide operators, NAICOM previously issued detailed guidelines on the Minimum Capital Requirements (MCR). These guidelines outlined eligible and ineligible capital instruments, admissible assets, verification procedures, and reporting timelines.

The commission stated that the capital injection has enhanced the financial resilience of operators and attracted domestic and foreign investment. The reform is designed to enable local insurers to underwrite larger risks in key sectors of the economy.

Strengthening the Financial System

The recapitalisation is part of the federal government's broader financial sector transformation agenda. The initiative aims to support national economic growth and help Nigeria reach a $1 trillion economy by 2030.

NAICOM noted that the higher capital base will improve the ability of insurers to settle policyholder claims promptly. It also provides a foundation for risk-based supervision, aligning regulatory capital with the risk profile of each operator.

The regulator assured policyholders and investors of its commitment to consumer protection and market conduct. It plans to provide regular updates on post-recapitalisation supervisory actions and the implementation of the Risk-Based Capital Framework.