NAICOM issues licences to 43  insurance firms after recapitalisation

By Onu Okorie

History was made on Wednesday as the National Insurance Commission NAICOM presented new Licence Certificates to insurance companies that met its revised minimum capital requirements, marking a defining moment in the industry’s recapitalisation drive.

The ceremony, held at the Commission’s headquarters in Abuja, saw 43 insurance companies declared compliant with the new capital thresholds and set to receive their fresh operating licences.

Speaking at the event, the Commissioner for Insurance CFI congratulated the successful firms, describing the issuance of the new licences as a significant milestone in the recapitalisation programme. He said the development heralds the start of a new regulatory era anchored on stronger capitalisation, improved corporate governance, and enhanced product innovation, as part of the Commission’s broader push to build a stronger, more resilient, and globally competitive insurance industry in Nigeria.

The Commissioner charged the companies to leverage their enhanced capital base to drive innovation, develop new products, and deepen insurance penetration nationwide. He stressed that the Commission holds high expectations for professionalism, operational efficiency, and improved returns on investment, adding that the successful completion of the recapitalisation exercise positions the industry for the next phase of regulatory reform.

He further disclosed that the Commission’s next major regulatory initiative would be the implementation of the Risk-Based Capital RBC framework, under which insurers’ capital levels will be aligned with the risks inherent in their business portfolios.

NAICOM reaffirmed its commitment to removing regulatory impediments where appropriate, while maintaining robust oversight and enforcing standards designed to protect policyholders and strengthen market confidence.

The issuance of the certificates marks the commencement of a phased transition to higher capital standards, aimed at enhancing the financial capacity, solvency, and claims-paying ability of insurance operators across Nigeria.