The National Insurance Commission has issued fresh operating licences to seven insurance companies that have met Nigeria’s revised minimum capital requirements.
The companies were confirmed and verified as compliant under the Nigerian Insurance Industry Reform Agenda 2025, known as NIIRA 2025. NAICOM said the latest licensing exercise represents another step towards improving financial stability, professionalism and public confidence in Nigeria’s insurance industry.
The seven insurers granted the new licences are: emPLE General Insurance Limited, emPLE Life Assurance Limited, Sovereign Trust Insurance Plc, Tangerine Life Insurance Limited, Alliance & General Insurance Plc, Guinea Insurance Plc, Regency Alliance Insurance Plc
The development brings the NAICOM new licences issued under the reform programme to another significant milestone as regulators move the industry towards higher capital standards.
Speaking on the development, the Commissioner for Insurance, Segun Omosehin, urged the newly licensed companies to deploy their capital prudently and effectively. He said the additional capital should support sustainable expansion while strengthening the ability of insurers to protect policyholders. Omosehin also challenged the companies to move away from unethical practices associated with the industry’s past.
According to him, insurers must embrace stronger corporate governance, transparency and accountability. The commissioner stressed that the success of the reform would depend on collective commitment from regulators and industry operators.
He said stakeholders must work towards building an insurance industry that is financially stronger, credible and resilient. Such an industry, he added, must consistently meet its obligations, honour promises made to policyholders and rebuild public confidence in insurance.
Omosehin disclosed that the commission’s next major regulatory initiative would be the implementation of the Risk-Based Capital framework.
Under the proposed framework, an insurer’s capital requirement will be linked to the risks associated with its particular business portfolio. The approach is expected to encourage insurers to maintain capital levels that appropriately reflect the nature and scale of the risks they assume.
NAICOM said a total of 50 insurance companies have so far been declared compliant with the new minimum capital requirements.
The issuance of certificates to the verified operators marks the beginning of a phased transition towards higher capital standards across the industry. The reform is designed to strengthen the financial capacity of insurance companies, improve solvency and enhance their ability to pay legitimate claims.
The latest NAICOM new licences therefore form part of a broader regulatory effort to ensure that insurance operators possess sufficient financial strength to withstand market risks and fulfil their obligations to policyholders. For Nigerian consumers, the reforms could also determine how effectively insurers respond to claims and how much confidence the public places in the sector.
