The future of Nigeria’s insurance industry came under sharp focus on Wednesday as the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, delivered a decisive industry message—conveyed on his behalf by the Deputy Commissioner for Insurance, Dr. Usman Jankara—at the 2025 Continental Re CEO Roundtable in Lagos.
Represented by Dr. Jankara, the Commissioner reaffirmed NAICOM’s firm stance on industry recapitalisation, outlining timelines, expectations, and the strategic shifts required to build a resilient, competitive insurance sector.
Speaking under the sub-theme, “Recapitalization: Timelines, Targets and Strategic Implications,” Omosehin commended Continental Re for convening a conversation he described as “central to the transformation the industry must urgently embrace.”
Held under the broader theme, “Recapitalization & Beyond: Rethinking Risk, Capacity & Collaboration for a Resilient Insurance Sector in Nigeria,” the roundtable provided a platform for the Commissioner to deliver what many executives at the event called one of the clearest policy directions the industry has heard in recent years.
‘The Sector Is at a Defining Moment’ — Commissioner
In his message, Omosehin stated that although regulatory reforms have advanced, Nigeria’s insurance penetration—still below 1% of GDP—remains among the lowest globally.
He emphasized that recapitalisation is not merely a compliance requirement but a strategic necessity, aligning with global recommendations on financial resilience.
“Financial resilience is no longer a luxury; it is a necessity for sustainable development,” the Commissioner asserted. “Our goal is not just solvency; it is to build institutions capable of withstanding shocks, adapting to change and thriving in uncertainty.”
NAICOM’s Recapitalisation Timeline Remains Non-Negotiable
Reiterating the recapitalisation framework under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, Omosehin restated the new Minimum Capital Requirements (MCR):
- ₦10bn for Life insurers
- ₦15bn for Non-Life insurers
- ₦35bn for Reinsurers
He stressed that all deadlines remain firm:
- September 30, 2025: Submission of recapitalisation plans
- Monthly: Mandatory progress reports (within 10 working days after month-end)
- Nov 2025 – June 2026: Capital verification
- July 30, 2026: Final compliance deadline and issuance of licenses
Omosehin further disclosed that capital verification will be handled exclusively by Big Four audit firms, ensuring transparency, integrity and global best practice.
‘Recapitalisation Is the Starting Point, Not the Finish Line’ — Commissioner
The Commissioner outlined the strategic implications of the exercise:
- Stronger solvency and underwriting depth
- Larger retention of risks within the local market
- Increased investor confidence
- More mergers and acquisitions to foster scale
- Greater regional competitiveness under AfCFTA
He emphasized that AfCFTA presents enormous opportunities for Nigerian insurers—access to a 1.3 billion-person market and inclusion in large-scale continental risks and infrastructure projects.
“Recapitalisation is your passport to regional relevance,” he told industry leaders.
Beyond Capital: A Shift in Risk Thinking
Omosehin stressed that financial capital is only one part of the resilience equation. The industry must invest in:
- Emerging risk capabilities (climate, cyber, supply chain, geopolitical risks)
- Localised risk models and data systems
- ESG-driven underwriting and investment
- Human capital—especially actuarial, leadership and innovation skills
- Technology, digital distribution, insurtech and catastrophe modelling
Citing the African Insurance Organisation, he reminded executives that “the future of African insurance will be digital, data-driven and customer-centric.”
Collaboration Will Shape the New Industry Order
The Commissioner called for deeper collaboration across the value chain:
- Strategic, not transactional, reinsurance partnerships
- Public-private partnerships to deepen penetration
- Industry-wide cooperation to mobilize capital and expertise
- Cross-border collaboration under AfCFTA
He noted that recapitalisation will likely trigger mergers and acquisitions, but the real advantage will come from strategic alliances that strengthen market capacity.
‘Let Us Move Beyond Compliance to Competitiveness’ — Commissioner
Closing his message, Omosehin urged CEOs to view recapitalisation as a moment of reinvention for the insurance industry.
“Recapitalisation is not the end—it is the beginning of a new era,” he declared.
“Let us move beyond solvency to resilience, beyond compliance to competitiveness, and beyond borders to continental leadership.”
He assured that NAICOM will continue to provide guidance, engagement and support to ensure that the sector emerges stronger, more innovative and more trusted.
At the Continental Re CEO Roundtable in Lagos, Deputy Commissioner Dr. Usman Jankara delivered a decisive message on behalf of NAICOM CEO and Commissioner for Insurance, Olusegun Ayo Omosehin, reaffirming strict recapitalisation deadlines and outlining a bold strategic vision for Nigeria’s insurance sector.
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