The National Insurance Commission (NAICOM) has directed insurance companies to settle all outstanding claims before re-licensing as the July 31st 2026 recapitalisation deadline draws closer.
The industry regulator, in its letter to Managing Directors/CEOs of the risk underwriting companies, warned that any of them with unpaid claims would not receive re-licensing approval after the ongoing recapitalisation exercise.
The commission maintained that the latest directive would make the exercise successful and improve public confidence in the insurance sector.
The commission stated: “The ongoing recapitalization exercise is aimed at strengthening the financial capacity, resilience, and overall stability of the insurance sector. As part of efforts to ensure that this exercise achieves its intended objectives and enhances public confidence in the insurance market, all insurance companies are hereby directed to fully settle all outstanding duly discharged claims. Please note that this is a mandatory pre condition for being certified as having fulfilled the statutory recapitalization requirement and the Commission’s regulatory clearance.
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“Accordingly, all insurance companies are required to Identify, reconcile all discharged claims currently outstanding in their records and thereafter, ensure full settlement of these claims to beneficiaries without further delay. A report of the reconciled discharged claims signed by the Managing Director/CEO and evidence of settlement of these claims shall be submitted to the Commission on or before 21th of July 2026”, it added.
Maintaining that claims settlement had become a key requirement for insurance company licensing and regulatory clearance, the NAICOM stated that compliance with the latest directive by the insurance companies would promote stronger market standards.
