NAICOM warns insurers: July 31 recapitalization deadline is mandatory

Nigeria's insurance industry faces a critical juncture as the National Insurance Commission (NAICOM) reiterates the mandatory nature of the July 31 recapitalization deadline. "The deadline is not symbolic; it is regulatory, and the industry must treat it with the urgency it deserves," stated Mr. Olusegun Ayo Omosehin, Commissioner for Insurance and CEO of NAICOM.

The recapitalization exercise is a cornerstone of NAICOM's reform agenda, designed to foster a more robust, resilient, and consumer-centric insurance sector. The increased minimum capital requirements are intended to bolster insurers' ability to pay claims, strengthen their financial standing, improve domestic risk retention, and pave the way for a future risk-based capital framework.

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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.

Omosehin commended operators who have made substantial progress in raising capital and engaging investors. However, he emphasized that NAICOM will maintain a transparent, fair, and firm verification process, ensuring all operators demonstrate financial soundness and regulatory compliance. He added that enhanced capitalization should lead to better service delivery, prompt claims settlement, improved consumer protection, and increased public trust.

Beyond capital, Omosehin highlighted the indispensable role of professionalism, ethics, 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 asserted. He also acknowledged the contributions of the outgoing President of the Chartered Insurance Institute of Nigeria (CIIN), Mrs. Yetunde Olubumi Ilori, for her leadership in promoting professional excellence.

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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.