The National Insurance Commission (NAICOM) has warned insurers that only 14 days remain until the July 31, 2026, recapitalisation deadline, stating that the exercise is mandatory and every operator must meet the regulatory requirements.

Commissioner for Insurance, Mr Olusegun Ayo Omosehin, issued the warning at the investiture of Mr Akinjide Orimolade as the 53rd President and Chairman of Council of the Chartered Insurance Institute of Nigeria (CIIN), where he said the recapitalisation programme is central to the ongoing transformation of the insurance industry.

According to him, the recapitalisation exercise is not simply about complying with a regulatory requirement but about creating stronger insurance companies that are financially sound, able to settle claims promptly, retain larger risks and prepare for a risk-based capital regime.

“As at today, only 14 days remain to the July 31, 2026 recapitalisation deadline,” he said. “The deadline is not symbolic; it is regulatory, and the industry must treat it with the urgency it deserves.”

Omosehin said several insurers have already made significant progress by raising fresh capital, engaging investors, improving corporate governance and participating in the Commission’s verification process.

He, however, said NAICOM expects every operator to demonstrate financial strength, readiness and full compliance before the deadline.

“Our expectation is that every operator will demonstrate readiness, financial soundness, and full compliance. A stronger capital base must translate into stronger service delivery, prompt claims settlement, improved consumer protection, and a market that Nigerians can trust,” he said.

The Commissioner explained that the Nigerian Insurance Industry Reform Act 2025 has provided a stronger legal foundation for a more resilient, better-governed and responsive insurance market.

He said NAICOM’s reform programme is aimed at improving market conduct, protecting policyholders, strengthening corporate governance, increasing insurance penetration, expanding financial inclusion and promoting responsible innovation across the industry.

According to him, the success of the reforms will ultimately be measured by how effectively insurance protects individuals and businesses while promoting confidence and economic stability.

Omosehin stressed that regulation alone cannot transform the insurance industry, saying regulators, insurance companies, professional bodies, universities, policymakers and development partners must all work together to achieve lasting reforms.

He said the Chartered Insurance Institute of Nigeria occupies a strategic position because it is responsible for promoting professional discipline, ethical conduct, technical competence and standards that help the industry earn public confidence.

The Commissioner urged the new CIIN leadership to focus on three major priorities during its tenure.

He said the first priority should be strengthening professionalism and ethics through improved competence, ethical judgment, market discipline, consumer protection and continuous professional development.

According to him, restoring public confidence in insurance depends not only on stronger regulation but also on the conduct of professionals within the industry.

The second priority, he said, is developing the next generation of insurance professionals by expanding mentorship programmes, leadership development, succession planning, research and stronger partnerships with tertiary institutions.

He added that the future insurance workforce must be technically competent, digitally skilled, customer-focused and ethically grounded.

The third priority, he said, is promoting innovation while strengthening public trust.

Omosehin said digital transformation has become essential and called on CIIN to equip practitioners with modern skills in data-driven underwriting, efficient claims management, cybersecurity awareness, inclusive insurance distribution and responsible application of technology.

“Innovation must serve the policyholder, improve access, reduce friction, and strengthen confidence in insurance,” he said.

He also urged the Institute to play a greater role in translating regulatory expectations into professional competence by organising compliance education programmes, continuous professional development, board-level training and practical guidance for insurance operators.

The Commissioner said CIIN should continue to promote ethical standards, responsible sales practices, prompt claims settlement, accountability for misconduct, and structured feedback to help operators comply with regulatory reforms.

According to him, while NAICOM will continue to set and enforce regulations, the insurance profession must provide the competence, ethics and leadership required to make those regulations effective.

Omosehin congratulated Mr Akinjide Orimolade on his emergence as the 53rd President and Chairman of the Council of CIIN, expressing confidence that his leadership would strengthen insurance education, professional excellence, innovation and industry transformation.

He also commended the outgoing President, Mrs Yetunde Olubunmi Ilori, for her contributions to professional development, ethical standards and stakeholder engagement, saying her tenure strengthened both the Institute and the wider insurance industry.

The Commissioner assured the Institute of NAICOM of the continued partnership and regulatory support as both organisations work towards building a stronger, more trusted, inclusive and globally competitive Nigerian insurance industry. (The Nation)

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