The National Insurance Commission (NAICOM) has reaffirmed its commitment to preventing the collapse of any licensed insurance company in Nigeria, as part of ongoing efforts to strengthen the sector and protect policyholders.
The assurance was given by the Commissioner for Insurance and Chief Executive Officer, Olusegun Omosehin, at the 2026 Awards and Recognition Ceremony of the Nigerian Insurers Association held in Lagos.
Omosehin, who was represented by the Deputy Commissioner for Insurance on Finance and Administration, Ekerete Ola Gam-Ikon, said the commission is actively engaging financially weak firms 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,” he stated.
The regulator explained that the approach is part of a broader strategy to safeguard policyholders, enhance oversight, and improve the financial health of operators during the ongoing recapitalisation exercise.
Insurance firms are currently navigating a sector-wide capital verification process, a key requirement of the recapitalisation programme, with a deadline of July 31, 2026. The verification exercise is expected to conclude by June 2026, after which only companies that meet the new minimum capital thresholds will retain their operating licences.
NAICOM described the industry’s response to the exercise as encouraging, noting that the reforms are designed to ensure insurers are adequately capitalised to meet obligations and withstand financial shocks.
As part of the recapitalisation framework, non-life insurers are required to raise their capital base from ₦3 billion to ₦15 billion, life insurers from ₦2 billion to ₦10 billion, and reinsurers from ₦10 billion to ₦35 billion.
Beyond capital strengthening, NAICOM said it is pursuing innovation-driven reforms to modernise the industry and improve service delivery. These include integrating insurance with other financial services, promoting policy-based lending, introducing insurance bonds for contractors, and expanding health insurance frameworks.
Omosehin stressed that creating an enabling environment for operators is essential for effective regulation and long-term growth, adding that collaboration between regulators and industry stakeholders will be key to sustaining progress.
The commission reiterated that its priority remains building a resilient insurance sector capable of boosting investor confidence, improving claims settlement, and deepening insurance penetration across Nigeria.
