The National Insurance Commission (NAICOM) has announced that insurance and reinsurance companies with unresolved discharged claims will not be eligible for licence renewal after the conclusion of the ongoing recapitalisation exercise.
The directive comes as the July 31, 2026 deadline for the industry’s recapitalisation programme approaches, with the regulator emphasizing that prompt settlement of legitimate claims is essential to strengthening public confidence in the insurance sector.
In a circular addressed to the Managing Directors and Chief Executive Officers of all insurance companies, titled “Regulatory Directive – Settlement of Discharged Claims as a Precondition for Re-Licensing Pursuant to the Ongoing Recapitalisation Exercise,” NAICOM stated that clearing all outstanding discharged claims has become a mandatory requirement for regulatory approval.
According to the commission, the recapitalisation initiative is designed to improve the financial strength, resilience and long-term stability of insurance companies while promoting greater trust among policyholders.
NAICOM directed all insurers to identify and reconcile every outstanding discharged claim in their records before ensuring that beneficiaries receive full payment without further delay.
The commission also instructed companies to submit a reconciled report of all discharged claims, endorsed by their Managing Director or Chief Executive Officer, together with evidence that the claims have been fully settled. The required documentation must reach the commission on or before July 21, 2026.
The regulator stressed that compliance with the directive will be a critical condition for confirming that companies have met the statutory recapitalisation requirements and for granting regulatory clearance.
NAICOM further warned that failure to comply with the directive would affect the eligibility of insurance and reinsurance firms for confirmation and re-licensing following the completion of the recapitalisation exercise.
The commission urged all operators in the industry to adhere strictly to the directive as part of efforts to strengthen the credibility and sustainability of Nigeria’s insurance market.
