Nigeria: NAICOM sets July 21 deadline: Insurers with unpaid claims won’t be re-licensed
By Zuleihat Owuiye, Nigeria
The National Insurance Commission, NAICOM, has warned that no insurance company with outstanding claims will be re-licensed after the ongoing recapitalisation exercise, as it moves to restore public confidence in the sector.
In a regulatory directive issued Monday to all Managing Directors and Chief Executives of insurance and reinsurance companies, NAICOM said the settlement of all “duly discharged claims” is now a mandatory condition for regulatory clearance.
The directive comes less than four weeks to the July 31, 2026 recapitalisation deadline.
Regulatory Directive – Settlement of Discharged Claims as A Precondition for Re-Licensing Pursuant to the Ongoing Recapitalization Exercise”_, the letter stated that the recapitalisation is aimed at strengthening the financial capacity, resilience, and stability of the insurance industry.
“To ensure that this exercise achieves its intended objectives and enhances public confidence in the insurance market, all insurance companies are hereby directed to fully settle all outstanding duly discharged claims,” NAICOM stated.
The Commission stressed that compliance is not optional.
“Please note that this is a mandatory precondition for being certified as having fulfilled the statutory recapitalisation requirement and the Commission’s regulatory clearance.”
Compliance with this directive is a critical regulatory criterion for eligibility, confirmation, and re-licensing of all insurance/reinsurance companies after the conclusion of the ongoing recapitalisation exercise,” the Commission added.
It urged all operators to ensure “strict compliance with the content of this regulatory directive.”
The insurance sector in Nigeria has long struggled with perception issues, with delayed or unpaid claims cited as a major reason many Nigerians and businesses avoid insurance products.
By tying re-licensing to claims settlement, NAICOM is signaling that financial strength alone will not be enough. Companies must also prove they can meet obligations to policyholders.
Industry analysts say the directive will likely force a wave of claim settlements in the next two weeks as insurers rush to meet the July 21 reporting deadline and the broader July 31 recapitalisation cut-off.
NAICOM began the current recapitalisation exercise to raise minimum capital requirements for insurers and reinsurers, with the goal of creating fewer but stronger and better-capitalised companies that can underwrite bigger risks and pay claims promptly.
With the deadline approaching, the Commission appears focused on ensuring that the new, stronger industry is also a more customer-focused one.
