Concerns are growing among policyholders and industry stakeholders over eight Nigerian insurers whose recapitalisation applications are yet to receive final clearance from the National Insurance Commission (NAICOM).
NAICOM announced that 43 insurers had met the new capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and had subsequently received new operating licences. The regulator also granted a 14-day grace period to operators that submitted their applications for capital validation late.
With about a week remaining in the extension, attention has shifted to the eight companies whose final regulatory status remains pending and the potential implications for their policyholders.
The uncertainty has been heightened by NAICOM’s recent revocation of the operating licence of Nigeria Reinsurance Corporation (NRC) after the company failed to meet the statutory minimum capital requirement.
NAICOM appointed Senior Advocate of Nigeria Muiz Banire as receiver and provisional liquidator to oversee the company’s liquidation. The appointment took effect on August 3, following the cancellation of the corporation’s certificate of registration, according to a public notice dated August 4.
The development has raised questions about the continuity of existing insurance policies and the protection available to customers if any of the remaining eight operators are ultimately unable to meet the new requirements.
Unlike bank deposits, insurance contracts can remain active for extended periods, meaning policyholders may have existing motor, life, property, health, marine and business coverage with insurers whose regulatory status is still being determined.
The situation therefore places renewed focus on how existing policies and claims would be handled should an insurer exit the market following the recapitalisation process.
READ ALSO : NAICOM Clears 43 Insurers After Recapitalisation Exercise, Eight Others Under Review
NAICOM has said the recapitalisation exercise is intended to create a stronger, more resilient and adequately capitalised insurance industry while improving confidence in the market.
The Nigerian Insurers Association (NIA), meanwhile, has called for calm and expressed support for the eight companies undergoing final verification. The association also commended NAICOM for what it described as a structured and transparent implementation of the new capital requirements.
The Chairman of Nigerian Insurers Association, "Ebelechukwu Nwachukwu" said the completion of the recapitalisation exercise represented a major milestone for the industry, arguing that stronger capital positions would improve insurers’ ability to meet their obligations and support large-scale economic activity.
“The successful outcome of the recapitalisation exercise is a major win not just for regulators and operators, but also for policyholders, investors and the wider Nigerian economy,” Nwachukwu said.
Comments (0)
You must be logged in to post comments.
No comments yet. Be the first to start the conversation!