The National Insurance Commission (NAICOM) has emphasized that transparency and integrity in its ongoing Minimum Capital Requirement (MCR) verification exercise are non-negotiable. The declaration was made by the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, at the EY Insurance Summit on the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mr. Omosehin described the commission’s multi-layered reform agenda, highlighting the central role of independent audits. “We are partnering with the Big 4 firms to conduct independent verification of the MCR of all insurance companies,” he said. Comparing the exercise to airport security, he explained, “Every entity must pass through the scanner to validate compliance with the MCR. This ensures credibility, boosts investor confidence, and strengthens market integrity.”
The Commissioner said that the industry’s response has been encouraging. Many insurers have indicated readiness for capital verification, with boards approving strategies for fresh capital injection, mergers, and operational restructuring. “The Commission has completed reviews of recapitalization plans and issued feedback to institutions,” Mr. Omosehin stated.
He stressed that recapitalization is only the beginning. After completing the MCR exercise and licensing compliant firms, NAICOM will roll out the Risk-Based Capital (RBC) framework. The RBC toolkit, he said, is near completion and will align capital requirements with the risk profile of each institution, promoting prudent risk management and capital allocation.
Mr. Omosehin also flagged emerging regulatory obligations under IFRS 17. The new accounting standard, he explained, introduces valuation and reporting complexities that require actuarial expertise. “Actuaries will play a critical role in pricing compulsory insurance, assessing liability valuations, supporting RBC computations, and enhancing NAICOM’s data collection and analytics capabilities.” The Commission is reportedly finalizing plans to engage actuaries to strengthen capacity in these areas.
The NAICOM chief outlined clear expectations for all industry stakeholders. Insurers and reinsurers are expected to meet MCR timelines, adopt transparent reporting practices, invest in technology, entrench sound risk management systems, and settle claims promptly. Actuarial professionals are to support IFRS 17 compliance, while audit firms must ensure independence in capital verification. Brokers, investors, and technology partners are called upon to innovate distribution, deepen customer engagement, and expand Insurtech solutions to promote financial inclusion.
Dr. Omosehin reaffirmed NAICOM’s commitment to collaboration. “Our shared goal is a sector that is resilient, innovative, and globally competitive,” he said.
Acknowledging lingering industry challenges, he noted the impact of mergers and acquisitions, macroeconomic instability, and capacity gaps. Integration issues in M&A processes, inflationary pressures, and foreign exchange volatility, he said, continue to affect capital mobilization. Yet, financial strength alone is insufficient without strong underwriting expertise and robust risk management frameworks.
Looking ahead, Mr. Omosehin outlined NAICOM’s long-term strategic vision. The sector’s resilience, he said, will rely on digital transformation, AI-enabled fraud detection, IoT-based risk prevention, and fully digital insurance platforms. Embedding sustainability in underwriting and investment decisions will align the sector with global ESG standards, attract responsible capital, and leverage opportunities under the African Continental Free Trade Area (AfCFTA).
“The future of the industry depends on developing local risk models and deep analytics to tackle emerging threats, including climate change, cyber risks, and public health emergencies,” he stated. Achieving this vision, he concluded, requires strong balance sheets, cohesive regulation, and unified industry action.
