The National Insurance Commission (NAICOM) has reaffirmed its commitment to ensuring that no licensed insurance company in Nigeria collapses, as part of ongoing efforts to strengthen the industry and safeguard policyholders.

The Commissioner for Insurance and the Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, disclosed this at the Nigerian Insurers Association (NIA) ‘s 2026 awards and recognition ceremony, held in Lagos on Thursday.

Mr Omosehin said this as insurance companies are undergoing a recapitalisation process, with the deadline set for July 31, 2026.

He was represented by the Deputy Commissioner for Insurance on Finance and Administration, Mr Ekerete Ola Gam-Ikon.

He said the commission had identified financially weak insurance firms and was working closely with them to ensure their survival through restructuring, mergers or acquisitions.

According to him, the move was part of NAICOM’s broader strategic priorities to safeguard policyholders, improve regulatory effectiveness, promote innovation, ensure financial soundness, and deepen insurance penetration.

He said NAICOM was committed to ensuring that all licensed operators remained viable, particularly through the ongoing recapitalisation process.

“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.

Mr Omosehin noted that upon assumption of office, the commission prioritised rebuilding public trust in the insurance sector, leading to timely interventions in distressed firms.

He cited African Alliance Insurance as a key example, noting that regulatory intervention had helped restore the company to stability and repositioned it for continued operations.

He added that the ongoing recapitalisation exercise would further strengthen operators and boost public confidence in the sector.

The commissioner also highlighted the importance of innovation, noting that NAICOM was sustaining reforms initiated by previous administrations to modernise the industry and improve service delivery.

Regarding insurance penetration, he said the commission was collaborating with key stakeholders and government agencies to expand access and drive adoption nationwide.

He said initiatives under consideration included integrating insurance with other financial services, enhancing policy-based lending, promoting insurance bonds for contractors, and expanding health insurance frameworks.

According to him, creating an enabling environment for operators is critical to ensuring that regulatory frameworks are effectively implemented.

Mr Omosehin commended the Nigerian Insurers Association for organising the event, describing it as a reflection of the sector’s growing relevance and renewed momentum.

He expressed optimism that continued collaboration between regulators and operators would drive sustainable growth in the insurance industry. 

(NAN)