NAICOM Says No Licensed Insurer Will Be Allowed to Collapse

The National Insurance Commission has assured Nigerians that no licensed insurance company will be allowed to collapse during the industry’s recapitalisation.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, gave the assurance at the 2026 Awards and Recognition Ceremony of the Nigerian Insurers Association held in Lagos.

Omosehin, who was represented by the Deputy Commissioner for Insurance, Finance and Administration, Ekerete Ola Gam-Ikon, said the commission was closely monitoring financially weak insurance firms to protect policyholders and strengthen the sector.

The ongoing recapitalisation exercise has a deadline of July 31, 2026. According to NAICOM, the process is meant to improve the financial strength of operators, deepen public confidence, and make the insurance industry more stable.

Omosehin said the commission had already identified weak firms and was engaging them on possible restructuring, mergers or acquisitions.

“We have made it clear that no insurance company will be allowed to fail. We are engaging weaker firms and supporting them through restructuring, mergers or acquisitions to ensure continuity,” he said.

He explained that NAICOM’s focus was not only on recapitalisation, but also on protecting policyholders, improving regulation, encouraging innovation, and expanding insurance penetration across the country.

According to him, one of the commission’s major priorities since he assumed office has been rebuilding public trust in the insurance sector.

He cited African Alliance Insurance as an example of a company that benefited from regulatory intervention, saying the action helped restore stability and reposition the firm for continued operations.

Omosehin added that the recapitalisation exercise would help strengthen insurance companies and make them better able to meet their obligations to customers.

He also said NAICOM would continue reforms started by previous administrations to modernise the industry and improve service delivery.

On insurance penetration, the commissioner said the regulator was working with key stakeholders and government agencies to expand access to insurance products and encourage more Nigerians to embrace insurance.

The assurance comes as licensed insurance firms race to meet the recapitalisation deadline, with weaker operators expected to explore fresh capital, mergers, acquisitions or restructuring to remain in business.