NAICOM Eyes Capital Upgrade For Takaful, Microinsurance Firms

Although the insurance industry is currently undergoing an ongoing recapitalisation exercise, with insurance and reinsurance firms being the target, there are indications that Takaful and micro-insurance outfits will also soon be asked to upgrade their capital.

LEADERSHIP learnt that the National Insurance Commission (NAICOM) is currently assessing the insurance industry’s subsectors to choose the best capital to effectively cover risks undertaken by takaful and microinsurance firms in the country.

While the regulator seems careful not to overload every player with recapitalisation at the same time, it was learnt that the next phase after the ongoing exercise is that of players in the informal sector of the economy.

Confirming this development at NAICOM seminar organised for Insurance journalists in Abeokuta, Ogun State recently, the commissioner for Insurance/CEO, NAICOM,  Olusegun Omosehin, said, the regulator is indeed considering recapitalisation for takaful and Micro insurance outfits, considering the changes in the business operating environment and increase in assets replacement value which then mean, operators must be very liquid to carry out the business of underwriting in the grassroots.

He, however, assured that, though the exercise is critical, it will allow the ongoing exercise scale through before kickstarting the capitalisation of Micro and takaful firms.

Disclosing the reforms the regulator has done in that strata, Omosehin said: “We have fostered the growth of microinsurance, Takaful, InsurTech, and web aggregators, hence promoting the development of simple, accessible, and affordable insurance products. By embracing alternative distribution channels, we’re expanding insurance’s reach to underserved markets.

“To increase penetration, insurance solutions must be present in high-impact sectors such as: Transport, Agriculture, Micro, Small, and Medium Enterprises (MSMEs), and Digital marketplaces. We can drive greater financial inclusion and protection by ensuring insurance products reach people where they are.”

Saying that, Insurance is not merely a matter of policies and paperwork, it is a promise of protection, a mechanism of resilience, and a pillar of social stability, he added that, “whether it’s a paid claim that helps a business recover from disaster, a microinsurance cover that shields a family from financial ruin, or a takaful product that empowers inclusive participation, the essence of insurance lies in its human impact.”

On accessible, affordable, and relevant coverage, he said, the regulator enables farmers, riders, traders, and gig workers to purchase tailored protection at the point of need, ensuring policyholders can rely on timely and fair claims settlement.

“NIIRA promotes inclusive insurance growth, driving increased penetration while maintaining market stability. This balanced approach enables the market to grow bigger and stay safer, achieving sustainable development and policyholder protection,” he stated.

To him, “this principle guides our work at NAICOM. We are committed to enabling innovation, safeguarding policyholders, and cultivating a market that Nigerians can trust. But trust is not built in isolation but co-created through transparency, accountability, and informed dialogue.

“We therefore call on you, our partners in the media, to take centre stage in this journey. Through accurate reporting, thoughtful analysis, and constructive engagement, you can shape public understanding and confidence in the insurance industry.”