NAICOM Warns Insurers With Unpaid Claims
NAICOM directs insurers to settle outstanding claims before re-licensing as the recapitalisation deadline draws closer.
Nigeria’s insurance regulator has issued a warning ahead of the July 31st 2026 recapitalisation deadline. The National Insurance Commission (NAICOM) has announced that insurance companies with unpaid claims will not receive re-licensing approval after the ongoing insurance recapitalisation exercise.
In a letter sent to all Managing Directors and CEOs of insurance companies, NAICOM said the move supports efforts to make the exercise successful and improve confidence in the insurance sector. The NAICOM claims directive requires firms to clear all outstanding duly discharged claims before they can complete regulatory approval.
The commission 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.
The NAICOM claims directive makes claims settlement a key requirement for insurance company licensing and regulatory clearance. NAICOM also warned that compliance will determine eligibility for confirmation and re licensing after the recapitalisation process. The NAICOM claims directive highlights the importance of timely payments and stronger market standards.
How will this new requirement shape trust in Nigeria’s insurance industry?
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