SEC, NAICOM strengthen support for insurance industry recapitalisation drive

The Securities and Exchange Commission (SEC) and the National Insurance Commission (NAICOM) have stepped up efforts to support the ongoing recapitalisation of Nigeria’s insurance industry, offering regulatory concessions and unveiling new guidelines to enhance growth, innovation, and compliance.

Speaking after the Insurers’ Committee meeting in Lagos, Mrs. Ebelechukwu Nwachukwu, Chairman of the Communication and Stakeholders Engagement Sub-Committee, said SEC has granted about nine concessions to facilitate capital raising by insurance companies.

According to her, SEC’s Director-General, Dr. Emomotimi Agama, announced the establishment of a dedicated desk for insurance firms, with a commitment to process capital raising approvals within 14 days, provided applications are complete and submitted on time.

On its part, NAICOM has circulated draft guidelines on new minimum capital requirements for industry review, with final rules expected soon.

The Commission has also issued fresh guidelines on InsurTech and Takaful to drive innovation, digital adoption, and ethical standards.

Mrs. Nwachukwu disclosed that NAICOM has intensified risk-based supervision with ongoing inspections nationwide to ensure compliance and protect policyholders.

The Commissioner for Insurance, Mr. Olusegun Omosehin, also commended operators for prompt settlement of major claims, noting that four substantial claims were recently paid in full.

Key industry reforms under the Nigeria Insurance Industry Reform Act (NIIRA) 2025 were highlighted, including the finalisation of recapitalisation rules, operationalisation of the Policyholders’ Protection Fund, and the development of a mortality table in partnership with Africa Re. Insurers were urged to provide accurate data to support the initiative.

She further revealed that NAICOM will host the Insurance Directors’ Forum in November to prepare directors for the responsibilities expected under NIIRA 2025.

Another major focus of the meeting was the industry’s push to scale up the Nigerian Insurance Industry Database (NIID) and the Nigeria Integrated Insurance Platform (NIIP) to strengthen verification processes and ensure correct pricing of third-party motor insurance through a unified digital platform.

She said both regulators stressed that recapitalisation should go beyond raising funds, with the broader objective of strengthening ethical standards, enhancing transparency, and building consumer trust in the industry.

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