By Abiodun Folarin
WorldStage– The National Insurance Commission (NAICOM), has commenced the issuance of new licence certificates to insurance companies that successfully met the Commission’s new minimum capital requirements, marking a major milestone in Nigeria’s insurance sector recapitalisation programme.
The presentation of the new licence certificates took place on Tuesday at NAICOM’s headquarters in Abuja, where the Commissioner for Insurance (CFI) described the exercise as the beginning of a new regulatory era aimed at strengthening the industry’s financial resilience and global competitiveness.
Speaking at the ceremony, the Commissioner congratulated the successful companies, noting that the recapitalisation exercise has laid the foundation for stronger capitalisation, improved corporate governance, enhanced product innovation and a more robust insurance market.
He urged the newly recapitalised insurers to utilise their stronger capital base to introduce innovative products, expand insurance penetration and improve service delivery across the country.
According to him, the Commission expects higher standards of professionalism, operational efficiency, innovation and improved returns on investment from the companies, adding that the successful completion of the recapitalisation programme positions the industry for the next phase of regulatory reforms.
The Commissioner also disclosed that NAICOM’s next major reform initiative will be the implementation of the Risk-Based Capital (RBC) framework, which will align insurers’ capital requirements with the level of risks associated with their business portfolios.
He reaffirmed the Commission’s commitment to creating an enabling regulatory environment by removing unnecessary bottlenecks while maintaining effective oversight to safeguard policyholders’ interests and strengthen public confidence in the insurance industry.
NAICOM said a total of 43 insurance companies that met the new minimum capital requirements will receive the new licence certificates in phases. The Commission noted that the exercise is expected to enhance the financial strength, solvency and claims-paying capacity of insurance operators, while positioning the industry for sustainable growth and greater competitiveness.
