By Oluwakemi Kindness
The National Insurance Commission, NAICOM, has begun issuing new licence certificates to insurance companies that met its revised minimum capital requirements.
The new certificates were presented to compliant insurers at the Commission’s headquarters in Abuja on Tuesday, marking a major milestone in Nigeria’s insurance industry recapitalisation programme.
The Commissioner for Insurance, Olusegun Ayo-Omosehin, congratulated the successful companies and said the issuance of the new licences marks a significant milestone in the recapitalisation programme.
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He said the development signals the beginning of a new regulatory era focused on stronger capitalisation, improved corporate governance and enhanced product innovation.
The Commissioner urged the recapitalised companies to use their stronger capital base to develop new products, improve operational efficiency and deepen insurance penetration across the country.
He also announced that NAICOM’s next major regulatory initiative will be the implementation of the Risk-Based Capital framework.
Under the framework, insurers’ capital levels will be aligned with the risks associated with their respective business portfolios.
NAICOM said the recapitalisation programme is expected to strengthen the financial capacity and solvency of insurance companies while improving their ability to meet claims.
The Commission also reaffirmed its commitment to removing regulatory barriers where necessary while maintaining robust oversight and enforcing standards that protect policyholders and strengthen confidence in the insurance market.
The issuance of the new certificates marks the start of a phased transition to higher capital standards for insurance operators in Nigeria.
