NAICOM warns insurers ahead of July 31 recapitalisation deadline

By Rosemary Iwunze

The National Insurance Commission (NAICOM) has warned insurance operators that the July 31 recapitalisation deadline is mandatory, urging companies yet to meet the new minimum capital requirements to act with urgency.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, gave the warning on Friday at the investiture of Mr. Akinjide Oluwarotimi-Orimolade as the 53rd President and Chairman of the Council of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

Omosehin said the recapitalisation exercise remains a key component of the Commission’s reform agenda aimed at building a stronger, more resilient and consumer-focused insurance industry.

According to him, the new minimum capital requirement is intended to enhance insurers’ claims-paying capacity, strengthen their balance sheets, improve domestic risk retention and prepare the industry for a risk-based capital regime.

“With about 14 days to the July 31 deadline, we commend operators that have made significant progress in raising capital, engaging investors, strengthening governance and submitting for the Commission’s verification process. However, the deadline is not symbolic; it is regulatory, and the industry must treat it with the urgency it deserves,” he said.

The Commissioner assured stakeholders that NAICOM would maintain a transparent, fair and firm verification process, stressing that every operator must demonstrate financial soundness, regulatory compliance and operational readiness.

He added that stronger capitalisation should ultimately translate into improved service delivery, prompt settlement of claims, enhanced consumer protection and greater public confidence in the insurance industry.

Omosehin noted that the Nigerian Insurance Industry Reform Act (NIIRA) 2025 has provided a stronger legal framework for a more resilient, better-governed and responsive insurance market.

He said NAICOM’s reform agenda is focused on improving market conduct, policyholder protection, corporate governance, insurance penetration, financial inclusion and responsible innovation.

Describing professionalism as the foundation of a trusted insurance industry, Omosehin said the sector’s growth depends not only on adequate capital and effective regulation but also on ethics, competence, innovation and public confidence.

“The strength of insurance depends not only on capital and regulation but also on professionalism, ethics, innovation and public confidence. A trusted insurance market cannot be built on capital alone. It requires competent professionals, ethical institutions, credible advice and fair treatment of policyholders,” he said.

The Commissioner commended the outgoing CIIN President, Mrs. Yetunde Olubumi Ilori, for what he described as her visionary and impactful leadership, noting that her commitment to professional excellence and stakeholder engagement had strengthened both the Institute and the wider insurance industry.

He also congratulated the new CIIN President, Mr. Akinjide Oluwarotimi-Orimolade, describing the Institute as a strategic professional body responsible for promoting technical competence, ethical standards, education, certification and research within the insurance industry.