NAICOM urges insurers to prioritise policyholder protection

The National Insurance Commission has charged newly licensed insurance companies to deploy their recapitalisation funds prudently and strengthen policyholder protection as they begin operations under the Nigerian Insurance Industry Reform Agenda (NIIRA 2025).

The Commissioner for Insurance, Olusegun Ayo Omosehin, gave the charge following the issuance of new licences to additional insurance companies that were verified as compliant with the minimum capital requirements under NIIRA 2025.

Omosehin urged the companies to ensure that their capital is used effectively to support sustainable business growth, rather than being deployed in ways that could undermine their financial strength and ability to meet obligations to policyholders.

He also called on the new licensees to break from unethical practices associated with the past and embrace stronger standards of corporate governance, transparency and accountability.

According to the commissioner, the success of the ongoing reforms requires collective commitment from all stakeholders to build a stronger, more credible and resilient insurance industry.

He said insurance companies must consistently fulfil their obligations and deliver on their promises to policyholders in order to deepen public trust and confidence in the sector.

NAICOM said the issuance of the additional licences followed the confirmation and verification of the companies’ compliance with the minimum capital requirements under NIIRA 2025.

The latest licensing exercise is part of efforts to strengthen financial stability and professionalism in Nigeria’s insurance industry.

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