The National Insurance Commission (NAICOM) has granted a two-month waiver to insurance underwriters to obtain final regulatory approval for their 2026 reinsurance and retrocession treaties, in a move aimed at ensuring business continuity across the industry.
Under existing rules, reinsurance treaties for insurers and reinsurers in Nigeria typically commence on January 1 each year. Section 3.8 of the Guidelines on Reinsurance for Insurers and Reinsurers in Nigeria—issued pursuant to the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other applicable regulations—requires companies to submit all reinsurance and retrocession treaties, including life treaty cover notes, addenda and endorsements, to NAICOM and obtain prior written final approval before implementation.
However, in a circular dated December 31, 2025, NAICOM said it would allow a transitional period of two months—January and February 2026—during which underwriters that have already secured provisional approval from the commission, or whose treaties were placed 100 per cent locally, may continue to operate their reinsurance arrangements pending final approval.
The circular, signed by the Head of the Innovation and Regulation Directorate at NAICOM, John R. Falade, was addressed to managing directors and chief executives of insurance institutions nationwide.
The commission acknowledged that the timing of the release of the new guidelines, coupled with the documentation and review process, made it difficult for all underwriters to secure final approvals ahead of the January 1, 2026 renewal date.
According to NAICOM, the temporary waiver is intended to allow affected insurers to complete outstanding requirements and obtain the commission’s final approval within the two-month window, without disrupting underwriting operations or the broader insurance market.
NAICOM stressed that all other provisions of the Guidelines on Reinsurance Arrangements remain unchanged and urged insurance and reinsurance companies to ensure strict compliance going forward.
