By TAIYE OLAYEMI

The National Insurance Commission (NAICOM) said 20 insurance companies have applied for verification under the ongoing recapitalisation exercise. The July 31 compliance deadline remains unchanged.

Mr Olusegun Omosehin, NAICOM Commissioner for Insurance and CEO, disclosed this on Wednesday during a media briefing on the Nigerian Insurance Industry Reform Act 2025 (NIIRA) in Lagos.

He said the companies had written to the commission confirming readiness for verification and had paid the required processing and verification fees.

Omosehin noted that the verification exercise had already begun and is being closely monitored for accuracy.

The News Agency of Nigeria (NAN) reports that four global audit firms – PwC, KPMG, Deloitte and Ernst & Young – have been approved to oversee the verification of insurance companies.

“The engagement of these firms ensures transparency and credibility in the recapitalisation process.

“I am happy to announce the recapitalisation process is on track. Twenty companies have confirmed readiness and paid verification fees.

“Through the public procurement process, BPP approved the Big Four firms to work with us. The exercise has commenced as we speak,” he said.

Omosehin explained the exercise was not only about raising capital but also strengthening insurers’ financial soundness and long-term sustainability.

He noted that NIIRA 2025 introduced a new minimum capital requirement and a risk-based capital framework for the insurance industry.

Currently, the commission is enforcing the minimum capital requirements. Life insurers must increase capital from N2 billion to N10 billion, non-life insurers from N3 billion to N15 billion.

NAN reports that reinsurance companies are required to raise capital from N10 billion to N35 billion, he said, emphasising compliance is crucial for industry stability.

“The next phase will assess each company’s risk portfolio against its capital under the risk-based framework,” Omosehin said.

According to him, companies failing to meet requirements may be summoned for meetings with both executive and non-executive directors before the end of the month.

“Our responsibility is to ensure that no policyholder suffers. Their interests will not be compromised,” he stressed.

The commissioner also disclosed that NAICOM had begun establishing the Insurance Policyholders Protection Fund, as provided under NIIRA 2025.

Draft guidelines for the fund have been circulated to stakeholders, while governance and operational frameworks are being finalised.

Omosehin said the fund, expected to become operational before the end of the first quarter, would protect policyholders in case of insurer insolvency.

The fund will settle valid claims first and recover the money from failed insurers’ assets, ensuring shareholders receive payouts only afterwards.

He further noted that new registration guidelines for insurance intermediaries, including brokers and loss adjusters, now grant operating licences valid for five years instead of two. (NAN)

•PHOTO: Olusegun Omosehin, Commissioner for Insurance and Chief Executive Officer of NAICOM and other dignitaries during a media interactive session in Lagos on Wednesday