NAICOM building
…As 14 days timeline to review insurers elapse today
By David Akinmola
The National Insurance Industry is set for another major shake-up as the National Insurance Commission (NAICOM) concludes verification of five more companies that have met the new minimum capital requirements, bringing the sector closer to a new market structure under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The five companies include Regency Alliance Insurance Plc, Sovereign Trust Insurance Plc, Tangerine Life Insurance Nigeria Limited, emPLE Life Assurance Limited and emPLE General Insurance Limited have successfully passed the commission’s final verification exercise and are expected to be formally listed among operators that complied with the new capital regime.
Their expected clearance is coming as NAICOM winds down verification of eight insurers that submitted evidence of compliance shortly before the July 31, 2026 deadline.
The development means that five of the eight companies placed under final regulatory scrutiny have now crossed the latest hurdle, leaving three operators awaiting the commission’s decision as stakeholders anticipate an updated list of licensed insurance companies.
The exercise is gradually separating operators that have secured the financial capacity to continue under the new regime from those whose future in the market remains uncertain.
It is also signaling the end of one of the most consequential phases of Nigeria’s insurance industry reform in recent years, with higher capital requirements expected to produce stronger balance sheets, greater risk-bearing capacity and, potentially, fewer but more competitive operators.
NAICOM had on July 31 announced that 43 insurance and reinsurance companies had been verified as compliant with the new capital requirements under NIIRA 2025 and other applicable laws and guidelines.
The commission subsequently disclosed that eight companies that submitted evidence of compliance close to the deadline were undergoing final verification and regulatory review, which was expected to be completed within 14 days.
The latest development effectively puts the recapitalization exercise on its final regulatory stretch, with attention now shifting from how much capital insurers have raised to what the new capital base will enable them to do.
For the industry, the bigger test will be whether the exercise translates into stronger underwriting capacity, improved claims settlement, deeper investments in technology and distribution, and greater ability to retain risks that are currently ceded to foreign reinsurers.
Industry stakeholders have consistently argued that recapitalization should not become an end in itself, but should strengthen the capacity of insurers to provide meaningful protection to households and businesses while mobilizing long-term funds for economic development.
The expected clearance of the five companies is therefore likely to intensify competition for premiums, particularly in the corporate and commercial insurance segment where balance-sheet strength is critical to underwriting large and technically complex risks.
Guinea Insurance Plc, another company among those undergoing final verification, had announced that it exceeded the N15 billion minimum capital requirement for non-life insurers through a hybrid capital-raising exercise. Its formal status is expected to depend on the completion of NAICOM’s verification.
Also awaiting regulatory resolution are African Alliance Insurance Plc and A&G Insurance Company Limited.
African Alliance is undergoing verification against the background of a regulatory intervention that commenced in October 2024. In June 2026, NAICOM transferred operational control of the company to a newly constituted board nominated by its shareholders following the conclusion of the intervention.
A&G Insurance, which was not included in NAICOM’s initial list of compliant companies, had notified the Commission before the deadline that it had satisfied the recapitalisation requirements.
The position of the Nigerian Agricultural Insurance Corporation (NAIC) remains distinct because of its ownership structure. As a wholly Federal Government-owned institution and the only non-private underwriter in the sector, its operating licence and regulatory status are expected to be influenced by government decisions regarding its future.
Meanwhile, NAICOM has already demonstrated that operators that fail to meet the new capital requirements face regulatory consequences.
The commission withdrew the operating licence of Nigeria Reinsurance Corporation after it failed to satisfy the statutory minimum capital requirement, paving the way for liquidation.
The action has strengthened expectations that the recapitalisation exercise will result in a smaller, financially stronger and more closely regulated insurance market.
The new capital regime requires non-life insurers to maintain a minimum capital of N15 billion, life insurers N10 billion, composite insurers N25 billion and reinsurers N35 billion.
The thresholds were introduced under NIIRA 2025 as part of efforts to strengthen the financial resilience of the industry and improve the capacity of operators to absorb risks and meet their obligations to policyholders.
Beyond satisfying regulatory requirements, operators will need to generate profitable premium growth, improve risk management, strengthen claims administration and invest in digital channels capable of taking insurance to a wider segment of Nigerians.
NAICOM has temporarily removed the list of licensed insurance companies from its website, with an updated register expected after the outstanding verification exercises are completed.
The publication of the new list is expected to provide the clearest picture of the final composition of the Nigerian insurance market following the recapitalisation exercise.
For policyholders and investors, it will also mark the beginning of a new phase in which insurers will increasingly be judged not by their ability to raise capital, but by their ability to convert stronger balance sheets into better underwriting, faster claims settlement, stronger customer confidence and sustainable returns.
