By David Akinmola
Anxiety is rising among policyholders and businesses over the status of insurance covers issued by operators yet to receive final regulatory clearance, following the National Insurance Commission (NAICOM) announcement that 43 insurance and reinsurance companies have successfully met the new minimum capital requirements under the Nigerian Insurance Industry Reform Act 9NIIRA) 2025.
The development has raised fresh questions about the continuity of existing policies, claims obligations and the protection available to customers of operators still undergoing regulatory review, even as NAICOM said the verification of eight companies that submitted evidence of compliance shortly before the July 31 deadline would be concluded within 14 days.
The uncertainty comes at a critical point for the insurance industry, which has just emerged from a 12-month recapitalization exercise designed to strengthen the financial capacity of operators and improve their ability to absorb large risks and meet policyholders’ obligations.
While NAICOM’s confirmation of 43 compliant companies has provided some clarity, the pending status of the eight operators has left policyholders seeking reassurance that their existing insurance contracts remain valid and that claims arising during the review period will continue to receive regulatory protection.
For many individuals and business, the concern goes beyond the recapitalization process itself. Insurance policies are often purchased months or years ahead, meaning some customers may still have active motor, life, property, health, marine and business covers with companies whose final regulatory status is yet to be determined.
A policyholder, Ayodele Sanusi, who spoke on the development at weekend, said the uncertainty could undermine confidence in the sector if customers were not given clear information about the status of their policies.
“What happens to our active insurance covers that still have lifespan running up to next year? We paid our premiums in good faith, and now we are left in the dark about whether our risks are genuinely covered,” the policyholder said.
Another insured person raised concerns about the protection available to customers should any operator ultimately fail to satisfy the regulator’s requirements.
“What happens now that the Policyholders Protection Fund has not been activated? If any of these unverified firms fail to meet regulatory standards, where do we run to for compensation?” the policyholder asked.
The concerns highlight one of the most important tests of the post-recapitalization insurance market whether the stronger capital base achieved by compliant operators will translate into greater confidence among policyholders.
NAICOM had said the recapitalization exercise is aimed at building a stronger, more resilient and adequately capitalized industry capital of honouring obligations promptly, underwriting larger and more sophisticated risks and contributing more effectively to economic growth.
The Nigerian Insurers Association (NIA), however, has urged calm, expressed solidarity with the eight companies undergoing final verification and commending NAICOM for what it described as a structured and transparent implementation of the new capital requirements.
The NIA Chairman, Ebelechukwu Nwachukwu, said the completion of the exercise represents a major milestone for the industry, noting that stronger capitalization would improve the ability of insurers to meet obligations and support large-scale economic activities.
“The successful outcome of the recapitalization exercise is a major win not just for regulators and operators, but for policyholders, investors, and the wider Nigerian economy,” she said.
According to her, a better-capitalized industry would be in a stronger position to honour claims, underwrite complex risks and serve as a more reliable pillar of economic growth.
The association also encouraged the eight companies undergoing final verification to remain confident while NAICOM completes the process within the stipulated 14-day period.
The development is significant because the recapitalization has already begun reshaping the competitive structure of the insurance industry, with operators raising fresh capital, pursuing mergers and acquisitions and strengthening their balance sheets to meet the new regulatory threshold.
Beyond the immediate question of compliance, the exercise is expected to separate operators with stronger financial capacity from those that may struggle to compete in an increasingly capital-intensive market.
The new capital regime is therefore expected to place greater pressure on insurers to demonstrate that additional financial capacity is translating into better underwriting, faster claims settlement and improved protection for customers.
For policyholders who have kept their premiums up to date, the expectation is that the conclusion of the exercise will not only produce a stronger insurance industry but also provide clear answers on the validity of their existing covers and the security of their claims.
