As the insurance recapitalisation deadline of July 31st 2026 draws near, the
National Insurance Commission (NAICOM) has stated that it will not re-license
any company with outstanding claims.
In a letter to all Managing Director/CEOs of insurance companies, issued
yesterday, titled: “Regulatory Directive – Settlement of Discharged Claims as A
Precondition for Re-Licensing Pursuant to the Ongoing Recapitalization
Exercise” NAICOM noted that the move is part of efforts to ensure that the
exercise achieves its intended objectives.
The letter stated: “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 pre condition 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 21th of July 2026.
NAICOM urged all insurance companies to “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.”