That recap deadline is set in stone, no extensions. The National Insurance Commission made it clear that operators must meet the new capital requirements by July 30, 2026, as it is a legal mandate, not a flexible administrative goal. Deputy Commissioner Usman Jankara stated that changing this date would require a full act of the National Assembly and presidential approval, a process NAICOM has no intention of starting. The new minimums are 15 billion Naira for non-life insurers, 10 billion for life insurers, and 35 billion for reinsurance companies, thresholds made necessary by Naira depreciation and inflation, which eroded previous capital bases.
The commission is already deep into the verification phase, using major global audit firms like KPMG and Deloitte to inspect company assets, with no insurer yet officially certified as compliant. Jankara framed the exercise as a necessary purge to force out weak players, encourage mergers, and create a more stable market capable of paying policyholder claims. Alongside this, he detailed the new Insurance Policyholders Protection Fund, a safety net funded by a 0.25 percent levy on insurer premiums, designed to pay claims if a company fails and to rebuild public trust in the sector.
The updated legal framework also brings tougher consequences for bad behavior. Delayed claim payments now incur monthly compound interest paid to the customer, plus fines. Penalties for regulatory breaches have shifted to a system where the commission can seize any financial gain from non-compliance and impose fines matching the severity of the infraction. NAICOM's position is that these combined measures will forge a more robust, reliable, and trustworthy insurance industry.
The commission is already deep into the verification phase, using major global audit firms like KPMG and Deloitte to inspect company assets, with no insurer yet officially certified as compliant. Jankara framed the exercise as a necessary purge to force out weak players, encourage mergers, and create a more stable market capable of paying policyholder claims. Alongside this, he detailed the new Insurance Policyholders Protection Fund, a safety net funded by a 0.25 percent levy on insurer premiums, designed to pay claims if a company fails and to rebuild public trust in the sector.
The updated legal framework also brings tougher consequences for bad behavior. Delayed claim payments now incur monthly compound interest paid to the customer, plus fines. Penalties for regulatory breaches have shifted to a system where the commission can seize any financial gain from non-compliance and impose fines matching the severity of the infraction. NAICOM's position is that these combined measures will forge a more robust, reliable, and trustworthy insurance industry.
