The National Insurance Commission (NAICOM) says it is working closely with key stakeholders and government agencies to broaden insurance penetration across the country, at a time when the sector is undergoing one of its most significant recapitalisation exercises in recent years.
Olusegun Omosehin, commissioner for Insurance and chief executive officer of NAICOM, disclosed this at the 2026 awards and recognition ceremony of the Nigerian Insurers Association (NIA) held in Lagos.
Omosehin explained that the commission is exploring a range of initiatives designed to embed insurance more deeply within Nigeria’s financial ecosystem. These include integrating insurance with other financial services, expanding policy-based lending frameworks, promoting the use of insurance bonds among contractors, and strengthening health insurance structures.
The approach, he noted, reflects a deliberate shift from conventional growth strategies to more inclusive models that align insurance with everyday economic activities.
At the heart of this push is the need to create an enabling environment that allows operators to function effectively while ensuring that regulatory frameworks are not only enforced but also practical.
According to Omosehin, improving the operating landscape is critical to achieving sustainable growth, particularly in a market where low penetration has long constrained the industry’s contribution to the broader economy.
While driving expansion, the regulator is also focused on maintaining stability within the sector. Omosehin reiterated NAICOM’s position that no licensed insurance company would be allowed to collapse, noting that the commission is actively supporting weaker firms through structured interventions.
He said financially distressed operators have been identified and are being guided towards survival through mechanisms such as restructuring, mergers, and acquisitions, in line with the commission’s broader objective of safeguarding policyholders and preserving market confidence.
“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 said.
This assurance comes as the industry approaches a critical deadline in its recapitalisation programme, with less than 90 days remaining before the July 31, 2026 cut-off date.
The recapitalisation exercise, introduced under the Nigeria Insurance Industry Reform Act (NIIRA 2025), represents a significant upward review of minimum capital requirements across all segments of the market.
Under the new framework, non-life insurance companies are expected to increase their capital base from ₦3 billion to ₦15 billion, while life insurers must raise theirs from ₦2 billion to ₦10 billion. Reinsurance firms face the highest threshold, with requirements moving from ₦10 billion to ₦35 billion.
The revised capital regime is intended to strengthen the financial capacity of operators, enabling them to absorb larger risks, improve claims settlement performance, and attract greater investor interest into the sector.
Omosehin noted that recapitalisation is not an isolated policy but part of a broader reform agenda aimed at restoring trust in the insurance industry and positioning it for long-term growth.
He recalled that upon assuming office, rebuilding public confidence became a central priority for the commission, prompting timely interventions in troubled firms to prevent systemic disruptions.
One of such interventions involved African Alliance Insurance, which he said has since regained stability following regulatory action, demonstrating NAICOM’s commitment to proactive supervision.
Beyond financial strength, the commission is also sustaining reform initiatives introduced by previous administrations, with a focus on modernising operations and improving service delivery across the industry.
For NAICOM, the convergence of stronger capital requirements, innovation-driven policies, and expanded access frameworks is expected to redefine the role of insurance in Nigeria’s economic landscape.
Omosehin expressed confidence that continued collaboration between regulators, operators, and policymakers would not only stabilise the industry but also unlock new growth opportunities, ultimately driving deeper insurance penetration nationwide.
