The National Insurance Commission (NAICOM) says it is committed to preventing the collapse of any licensed insurance company in Nigeria, as part of efforts to strengthen the sector and protect policyholders.
The assurance was given by the Commissioner for Insurance and Chief Executive Officer, Mr. Olusegun Omosehin, at the 2026 Awards and Recognition Ceremony of the Nigerian Insurers Association (NIA) held in Lagos on Thursday.
Omosehin’s remarks come as insurance firms continue to navigate an ongoing recapitalisation exercise, with a regulatory deadline set for July 31, 2026, aimed at improving financial stability across the industry.
What NAICOM is saying
NAICOM said it has identified financially weak insurance firms and is actively engaging them to ensure their survival through structured interventions.
- “We have made it clear that no insurance company will be allowed to fail. We are engaging weaker firms and supporting them through restructuring, mergers or acquisitions to ensure continuity,” said Omosehin, who was represented by the Deputy Commissioner for Insurance on Finance and Administration, Mr Ekerete Ola Gam-Ikon
The Commission explained that this approach forms part of its broader strategy to safeguard policyholders, improve regulatory oversight, and strengthen the financial health of operators.
It added that ensuring the viability of all licensed firms remains a key objective throughout the recapitalisation process.
Get up to speed
Insurance companies are currently undergoing a capital verification process, which is a core requirement of the ongoing recapitalisation exercise in the Nigerian insurance industry.
- The verification exercise is expected to be completed by June 2026.
- Only companies that meet the new minimum capital thresholds by the deadline will retain their operating licences.
- NAICOM has described the industry’s response to the recapitalisation programme as encouraging.
This process is designed to ensure that operators are adequately capitalised to meet obligations and withstand financial shocks within the sector.
More insights
The Commission also highlighted its focus on innovation and broader reforms to modernise the insurance industry and improve service delivery.
- NAICOM is working with stakeholders to deepen insurance penetration across the country.
- Planned initiatives include integrating insurance with other financial services and promoting policy-based lending.
- The Commission is also exploring insurance bonds for contractors and expanding health insurance frameworks.
Omosehin noted that creating an enabling environment for operators is essential for effective regulation and long-term sector growth, adding that ongoing collaboration between regulators and industry players will be critical in sustaining momentum.
What you should know
NAICOM recently revised the minimum capital requirements for insurance companies as part of efforts to strengthen the sector.
- Non-life insurers are required to increase capital from N3 billion to N15 billion.
- Life insurers must raise capital from N2 billion to N10 billion.
- Reinsurers are expected to increase capital from N10 billion to N35 billion.
The new framework is aimed at enhancing the industry’s capacity to absorb risks, improve claims settlement, and boost investor confidence in Nigeria’s insurance market.
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