July 07, (THEWILL) — With several days to the insurance recapitalisation deadline of July 31st 2026, the National Insurance Commission, NAICOM, has disclosed that it will not re-license any company with outstanding claims.
In a letter to all Managing Directors/CEOs of insurance companies, issued on Monday, July 6, 2026, NAICOM noted that the move is part of efforts to ensure that the exercise achieves its intended objectives.
The letter titled: “Regulatory Directive – Settlement of Discharged Claims as A Precondition for Re-Licensing Pursuant to the Ongoing Recapitalization Exercise” read in part:
“The ongoing recapitalization exercise is aimed at strengthening the financial capacity, resilience, and overall stability of the insurance sector. As part of efforts 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. Please note that this is a mandatory precondition for being certified as having fulfilled the statutory recapitalization requirement and the Commission’s regulatory clearance.
“Accordingly, all insurance companies are required to identify, reconcile all discharged claims currently outstanding in their records, and thereafter, ensure full settlement of these claims to beneficiaries without further delay. A report of the reconciled discharged claims signed by the Managing Director/CEO and evidence of settlement of these claims shall be submitted to the Commission on or before the 21st of July 2026.
“Please note that 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 recapitalization exercise. All insurance/reinsurance companies are required to ensure strict compliance with the content of this regulatory directive.”
NAICOM, had in November 2025, announced 31 July, 2026 as the deadline for issuing licences to insurance and reinsurance companies that meet the new Minimum Capital Requirement, MCR.
The apex insurance regulatory body emphasised that the recapitalisation exercise will enhance insurers’ solvency and underwriting capacity, enabling them to write larger policies and retain more risk within the country.
It added that the move would boost public and investor confidence, attract capital, and spur strategic mergers and acquisitions that promote scale and operational efficiency.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
