By Tony Obiechina, Abuja
The National Insurance Commission (NAICOM) has declared that transparency and integrity in the ongoing Minimum Capital Requirement (MCR) verification exercise are “non-negotiable.”
Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, disclosed this at the EY Insurance Summit on the Nigerian Insurance Industry Reform Act (NIIRA) 2025, where he listed the Commission’s multi-layered reform agenda.
Omosehin explained that the Commission’s collaboration with global audit firms is central to guaranteeing credibility in the capital verification process.
“This is why we are partnering with the Big 4 firms to conduct independent verification of the MCR of all insurance companies,” he said.
He compared the verification exercise to strict aviation security procedures, saying, “What we are doing is akin to the scanner at airports. Every entity must pass through the scanner to validate compliance with the MCR.
Our partnership with the Big 4 firms ensures independent validation of compliance with the MCR in line with extant laws and regulations. This collaboration is a cornerstone of investor confidence and market credibility.”
The NAICOM boss further disclosed that industry operators were responding positively to the process. According to him, “Industry response has been encouraging with a significant number of insurers indicating readiness for capital verification. Boards have approved strategies for fresh capital injection, mergers, and operational restructuring.
The Commission has completed reviews of recapitalization plans and issued feedback to institutions.”
Omosehin added that the Commission is concluding plans to engage an actuary to strengthen capacity in these areas and support industry-wide actuarial development.
The NAICOM boss further set out NAICOM’s expectations from insurers, reinsurers, actuaries, auditors, brokers, technology partners, and investors.
He said the Commission expects insurance and reinsurance companies to demonstrate full compliance with MCR timelines, adopt transparent reporting practices, invest in technology, entrench sound risk management systems, and prioritise prompt claims settlement.
He noted that actuarial professionals must assist companies on IFRS 17 compliance and liability valuation, while audit firms are expected to ensure the integrity and independence of the capital verification exercise.
Other stakeholders, including brokers, investors, and technology partners, he said, should drive innovation in distribution, deepen customer engagement, and expand the use of Insurtech solutions to support financial inclusion.
He reaffirmed the commitment of the current NAICOM management to collaborate with all stakeholders. “The current management of NAICOM is fully committed to working with all stakeholders – insurers, reinsurers, brokers, loss adjusters, actuaries, auditors, and technology partners – to change the narrative of the Nigerian insurance industry. Our shared goal is a sector that is resilient, innovative, and globally competitive.
Addressing lingering industry challenges, Omosehin acknowledged concerns around mergers and acquisitions, macroeconomic instability, and capacity gaps.
He stated that integration issues in M&A processes must be carefully managed, while inflationary pressures and foreign exchange volatility continue to affect capital mobilisation.
He also stressed that financial strength alone is insufficient without strong underwriting expertise and robust risk management frameworks.
He noted that NAICOM’s regulatory approach is principle-based, offering clarity while creating room for innovation within a safe operating environment.
Looking beyond compliance, the Commissioner presented the Commission’s broader strategic vision for the sector.
He said the long-term goal is to build resilience and competitiveness through digital transformation, AI-enabled fraud detection, the use of IoT for risk prevention, and fully digital insurance platforms. Omosehin also stressed the importance of embedding sustainability principles in underwriting and investment decisions to align with global ESG standards, attract responsible capital, and take advantage of the African Continental Free Trade Area (AfCFTA).
He added that the future of the industry depends on its capacity to develop local risk models and deepen analytics to tackle new and evolving threats including climate change, cyber risks, and public health emergencies.
According to him, achieving this vision requires strong balance sheets, cohesive regulation, and unified industry action.
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