Recapitalisation: Companies with outstanding claims will not be relicensed — NAICOM
NAICOM Sets Conditions for Insurance Re-Licensing Ahead of Recapitalization Deadline
By Rosemary Iwunze
As the July 31, 2026, deadline for insurance recapitalization approaches, the National Insurance Commission (NAICOM) has announced that it will not re-license any insurance company with outstanding claims.
In a letter issued yesterday to Managing Directors and Chief Executive Officers of insurance firms, NAICOM outlined this directive under the title “Regulatory Directive – Settlement of Discharged Claims as a Precondition for Re-Licensing Pursuant to the Ongoing Recapitalization Exercise.” The commission emphasized that this measure aims to ensure the recapitalization initiative meets its objectives.
“The ongoing recapitalization exercise is designed to strengthen the financial capacity, resilience, and stability of the insurance sector,” the letter stated. It further noted that full settlement of all outstanding duly discharged claims is a mandatory requirement for companies seeking certification of compliance with statutory recapitalization measures.
All insurance companies are instructed to identify and reconcile outstanding discharged claims, ensuring that beneficiaries receive full payment without delay. Each firm must submit a report of the reconciled claims, signed by the Managing Director or CEO, along with proof of payment, to NAICOM by July 21, 2026.
Failure to comply with this directive will jeopardize eligibility for re-licensing after the recapitalization exercise concludes, as the commission underscored the importance of adherence to these regulatory standards.