Lagos: The National Insurance Commission (NAICOM) says 20 insurers have applied for verification under the recapitalisation exercise. The July 31 deadline stands.
Mr Olusegun Omosehin, NAICOM Commissioner for Insurance and CEO, disclosed this on Wednesday during a media briefing on the Nigerian Insurance Industry Reform Act 2025 (NIIRA) in Lagos.
He said the companies had written to the commission confirming readiness for verification and had paid the required processing and verification fees.
Omosehin noted that the verification exercise had already begun and is being closely monitored for accuracy.
Four global audit firms – PwC, KPMG, Deloitte and Ernst & Young – have been approved to oversee the verification of insurance companies.
He said that engaging these firms would ensure transparency and credibility in the recapitalisation process.
“I am happy to announce that the recapitalisation process is on track. Twenty companies have confirmed readiness and paid verification fees.
He explained that, through the public procurement process, BPP approved the Big Four firms to work with NAICOM and that the exercise had already begun.
Omosehin explained the exercise was not only about raising capital but also strengthening insurers’ financial soundness and long-term sustainability.
He noted that NIIRA 2025 introduced a new minimum capital requirement and a risk-based capital framework for the insurance industry.
Currently, the commission is enforcing the minimum capital requirements. Life insurers must increase capital from N2 billion to N10 billion, and non-life insurers from N3 billion to N15 billion.
Reinsurance companies are required to raise capital from N10 billion to N35 billion. This requirement applies to the handful of reinsurance companies operating in Nigeria, and Omosehin emphasised that compliance is crucial for industry stability.
He stated that the next phase would assess each company’s risk portfolio against its capital under the risk-based framework.
According to him, companies that fail to meet requirements may be summoned to meetings with both executive and non-executive directors before the end of the month.
He stressed that NAICOM’s responsibility is to ensure that no policyholder suffers and that their interests are not compromised.
The commissioner also disclosed that NAICOM had begun establishing the Insurance Policyholders Protection Fund, as provided under NIIRA 2025.
Draft guidelines for the fund have been circulated to stakeholders, while governance and operational frameworks are being finalised.
Omosehin said the fund, expected to become operational before the end of the first quarter, would protect the more than 2 million policyholders in Nigeria in the event of insurer insolvency.
The fund will settle valid claims first and recover the money from failed insurers’ assets, ensuring shareholders receive payouts only afterwards.
He further noted that new registration guidelines for insurance intermediaries, including brokers and loss adjusters, now grant five-year operating licences instead of two.
