Recapitalisation: Insurers Tasked on Stronger Institutions, Better Service Delivery

The National Insurance Commission (NAICOM) and the National Pension Commission (PenCom) have called on insurance companies and pension fund operators to ensure that recapitalisation leads to stronger institutions, improved services, and better financial security for Nigerian citizens. Both sectors are currently undergoing recapitalisation processes, with the insurance sector having finalized its process and the pension sector's completion scheduled for July 2027.

At the 11th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE), NAICOM's insurance commissioner, Mr Olusegun Omosehin, emphasized that insurers must focus on strengthening their balance sheets, enhancing risk management, and improving claims settlement. Omosehin stated that the successful completion of recapitalisation marks the beginning of a new phase, necessitating prudent capital preservation and deployment.

He urged insurers to align their assets with liabilities, ensure adequate and diversified investments to meet policyholder obligations, and adopt disciplined investment policies and strengthened corporate governance to protect their enhanced capital bases. Omolola Oloworaran, Director-General of PenCom, warned pension fund operators to meet recapitalisation requirements urgently, stressing that there is no turning back.

Oloworaran highlighted the importance of recapitalisation in reinforcing regulated institutions and enhancing their capacity to withstand economic and financial shocks. She added that reforms are crucial as pension and insurance institutions handle resources vital to Nigerians' livelihoods and financial security. Oloworaran called for continuous assessment by regulators and industry stakeholders to determine if reforms are delivering tangible benefits to Nigerians, emphasizing that the ultimate goal should be ensuring that people feel the positive impact of these reforms.