Insurance Commission Grants 2 Months Waiver For Underwriters On Reinsurance Treaties Approval

The National Insurance Commission (NAICOM) has granted two months moratorium to underwriters across the country to get final approval on their reinsurances whose commencement date annually had always been 1st of January.

Recall that Section 3.8 of the Guidelines on Reinsurance for Insurers and Reinsurers in Nigeria, issued pursuant to the Nigerian insurance Industry Reform Act (NIIRA) 2025 and other extant regulations, requires that all reinsurance/retrocession treaties and life treaty cover- notes/addendum/endorsements shall be submitted to NAICOM and prior written final approval obtained from the commission before implementation or use.

However, to ensure business continuity and avoid disruption to the market, the regulator, through a circular signed by the head, (Innovation & Regulation Directorate, NAICOM, John R. Falade, dated December 31st, 2025 and addressed to all managing directors/CEOs of insurance institutions, stated that, it has granted “a transitional period of two (2) months (January and February 2026) during which underwriters who have obtained provisional approval from the Commission or whose treaties were placed 100% locally may continue to utilise their reinsurance/retrocession treaties for 2026, pending the issuance of final approval.”

The commission disclosed that, it acknowledges that, due to the timing of the release of the Guidelines and the period required for preparation and submission of documentations, it has not been possible for all underwriters to obtain final approvals ahead of the standard January 1, 2026, renewal date.

This, NAICOM added, is intended to ensure that all affected underwriters complete any outstanding requirements and obtain final approval of the Commission within this transitional period.

“All other provisions of the Guidelines on Reinsurance Arrangements remain unchanged, and insurance and reinsurance companies are required to ensure strict compliance.