The National Insurance Commission has presented new licence certificates to insurance companies that successfully met the Commission’s new minimum capital requirements.
Speaking at the presentation ceremony in Abuja, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, congratulated the successful companies and said the issuance of the new licences marked a significant milestone in the ongoing recapitalisation programme of the insurance industry.
Omosehin said the development signals the beginning of a new regulatory era focused on stronger capitalisation, improved corporate governance, enhanced product innovation and the Commission’s broader effort to build a stronger, more resilient and globally competitive insurance industry in Nigeria.
According to a statement by the Commission, the Commissioner urged the companies to take advantage of their enhanced capital base to drive innovation, develop new products and deepen insurance penetration across the country.
He said NAICOM expects higher standards of professionalism, innovation, operational efficiency and improved returns on investment from the recapitalised firms, noting that the successful completion of the exercise positions the industry for the next phase of regulatory reform.
Omosehin also disclosed that the Commission’s next major regulatory initiative would be the implementation of the Risk-Based Capital framework, under which the capital levels of insurance companies will be aligned with the risks inherent in their business portfolios.
The Commission reaffirmed its commitment to removing regulatory impediments where necessary while maintaining strong oversight and enforcing standards aimed at protecting policyholders and strengthening confidence in the insurance market.
“A total of 43 insurance companies that were declared compliant with the new capital requirements are expected to receive their new licences from the Commission. 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 in Nigeria,” the statement noted.
