The National Insurance Commission (NAICOM) has raised the minimum capital required for national microinsurance operators to 3 billion nairas (approximately $2.2 million), nearly five times higher than previous requirements. This decision aims to accelerate the penetration of insurance among low-income populations.
The revised framework stipulates that companies seeking a national license must reach this threshold to operate in all 36 states of the country as well as in the Federal Capital Territory, offering simple and low-premium products for informal and underinsured markets.
The new licensing guidelines for 2026 represent a significant increase compared to the previous regime, which required 40 million nairas ($29,000) for independent operators, 100 million nairas ($73,000) for state operators, and 600 million nairas ($440,000) for national operators. Now, the $2.2 million threshold should apply uniformly to all insurers offering microinsurance products.
This measure is part of a broader sector reform, which also sets capital requirements at 10 billion nairas ($7.3 million) for life insurance companies, 15 billion nairas ($11 million) for property and casualty insurance companies, and 35 billion nairas ($25.7 million) for reinsurers.
According to NAICOM, this reform aims to ensure that operators have sufficient financial capacity to honor their commitments, including claims payments, while supporting the country’s financial inclusion objectives.
