The National Insurance Commission (NAICOM) has directed insurance companies to settle all outstanding discharged claims before the conclusion of the ongoing recapitalisation exercise, warning that firms that fail to comply will not be re-licensed.
The directive comes as the July 31, 2026 recapitalisation deadline approaches, with the regulator seeking to strengthen confidence in Nigeria’s insurance industry by ensuring policyholders receive legitimate claim payments.
In a circular issued to the Managing Directors and Chief Executive Officers of insurance companies, titled “Regulatory Directive – Settlement of Discharged Claims as a Precondition for Re-Licensing Pursuant to the Ongoing Recapitalization Exercise,” NAICOM said the settlement of discharged claims has become a mandatory requirement for regulatory clearance.
According to the Commission, the recapitalisation exercise is intended to improve the financial strength, resilience and stability of the insurance sector, while restoring public trust in the industry.
NAICOM directed all insurance companies to identify and reconcile outstanding discharged claims in their records and ensure that beneficiaries receive full payment without further delay.
The regulator also instructed insurers to submit a reconciled report of all discharged claims, signed by their Managing Director or Chief Executive Officer, together with evidence that the claims have been settled.
The report must be submitted to the Commission on or before July 21, 2026.
NAICOM stressed that compliance with the directive would be a critical condition for confirming that insurers have met the statutory recapitalisation requirements and for the renewal of their operating licences.
It warned that insurance and reinsurance companies that fail to meet the requirement would not receive regulatory clearance following the recapitalisation exercise.
The commission added that the measure is designed to ensure stronger consumer protection and reinforce confidence in the insurance industry by compelling operators to honour valid claims while improving their capital base.