Nigerian insurers that have completed their recapitalisation are now receiving fresh operating licences, according to The Guardian Nigeria News. The new licences are being issued even as the industry regulator has yet to begin enforcing its risk-based capital framework.
The development follows a period in which several insurance firms worked to meet new minimum capital requirements set by the National Insurance Commission (NAICOM). The Guardian Nigeria News reports that the recapitalised companies have now secured their updated licences, allowing them to continue operations under the new regime.
The risk-based framework, which would adjust capital requirements based on the specific risks each insurer carries, remains pending enforcement. Industry watchers have noted that the framework is expected to replace the current flat minimum capital thresholds with a more nuanced assessment of each company's exposure.
Several insurers have publicly confirmed they have met the recapitalisation targets. CHI Life Assurance and Unitrust Insurance have both satisfied NAICOM's requirements, according to Punch Newspapers and Business News Nigeria respectively. Cornerstone Insurance and FIN Insurance have also met the 2025 recapitalisation requirement set by the Nigeria Insurers Association, as reported by Vanguard News.
However, not all firms have completed the process on schedule. Five insurers have cited verification delays and pending regulatory approvals as reasons for their slower recapitalisation, according to TheCable.
The next point to watch is when NAICOM begins enforcing the risk-based framework, which will determine how capital adequacy is assessed across the sector going forward.
