NAICOM urges insurers to put policyholder protection first

Nigeria’s newly licensed insurance companies have been told that fresh capital must strengthen their businesses and protect customers, not weaken their ability to pay claims and other obligations.

The warning came from Commissioner for Insurance Olusegun Ayo Omosehin after the National Insurance Commission issued additional licences to companies verified as meeting the minimum capital requirements under the Nigerian Insurance Industry Reform Agenda, known as NIIRA 2025.

Omosehin urged the insurers to use their recapitalisation funds effectively to support sustainable growth. He also called on the new licensees to move away from unethical practices associated with the past and adopt stronger standards of corporate governance, transparency and accountability.

The commissioner said the reforms depended on a collective commitment from stakeholders to build a stronger, more credible and resilient insurance industry. Insurers, he said, must consistently fulfil their obligations and deliver on their promises to policyholders to deepen public trust and confidence.

NAICOM said the licensing exercise followed confirmation and verification of compliance with NIIRA 2025’s minimum capital requirements. It described the move as part of wider efforts to strengthen financial stability and professionalism in Nigeria’s insurance industry.

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The success of the ongoing reforms requires collective commitment from all stakeholders to build a stronger, more credible and resilient insurance industry.