By David Akinmola
Even as nation’s insurance industry pushes through a major recapitalization exercise for conventional insurers and reinsurers, the National Insurance Commission (NAICOM) is setting its sights on the next phase strengthening the capital base of Takaful and Microinsurance operators.
The move is designed to enhance liquidity and claims capital for firms serving low-income and informal-sector policyholders across the country.
The commission is currently assessing the adequacy of capital requirement in the Takaful and Microinsurance segments, with the aim of ensuring that these operators can effectively manage the risksthey underwrite.
According to NAICOM, the forthcoming capital review will align with the evolving dynamics of the insurance market while supporting the goal of deepening financial inclusion.
Speaking at a seminal organized for journalists in Abeokuta, Ogun State, the Commissioner for Insurance, Olusegun Omosehin, confirmed that the regulator is considering a recapitalization framework for Takaful and Microinsurance firms once the ongoing exercise for conventional players concludes in the industry.
“We are indeed considering recapitalization for Takaful and micrinsurance outfits, given the changes in the business environment and the rising cost of asset replacement,” Omosehin said. “Operators must be sufficiently captalised and liquid to effectively underwrite grassroots risks.”
He explained that the commission is taking a phased approach to avoid overstretching operators while ensuring every segment of the market is adequately equipped to deliver on its mandate.
The planned upgrade, he said, would help stabilize the informal-sector segment, where many operators provide low-cost and inclusive insurance solutions. Highlighting reforms already undertaken, Omosehin, said NAICOM has promoted the growth of microinsurance, Takaful, InsurTech, and web aggregators to foster innovation and expand access to affordable protection. Through these efforts, the commission aims to reach millions of Nigerians who remain uninsured despite being vulnerable to daily economic and social risks.
“To increase penetration, insurance must be present in high-impact sectors, such as transport, agriculture, MSMEs, and digital marketplaces,” he added. “We can drive financial inclusion by ensuring insurance products reach people where they are.”
Omosehin described insurance as more than just a policy contract calling it a “promise of protection” and a “pilliar of social stability.”
He said the commission’s focus is to make insurance solutions accessible, affordable, and responsive to the needs of everyday Nigerians such as farmers, traders, riders, and gig workers.
“This balanced approach allows, the market to grow bigger and stay safer, achieving sustainable development and policyholders protection,” he said.
The NAICOM boss reaffirmed the regulator’s commitment to fostering a trustworthy, transparent, and innovative insurance landscape, urging journalists to support thie mission through accurate reporting and constructive engagement.
“Trust in insurance is not build in isolation, Omosehin noted. “It is co-created through transparency, accountability, and informed dialogue,”
Industry watchers believe that the planned capital review could strengthen the foundation for inclusive insurance in Nigeria, empowering Takaful and microinsurance firms to attract new investments, settle claims promptly, and extend coverage to millions at the grassroots.
