NAICOM Raises Microinsurance Capital to N3bn to Boost Grassroots Coverage

The National Insurance Commission (NAICOM) has increased the minimum capital requirement for national microinsurance companies to N3 billion, in a bid to deepen insurance penetration among low-income Nigerians.

The new requirement, contained in the commission’s 2026 licensing guidelines published on its website, represents a significant jump from the previous structure, where capital ranged from N40 million for unit operators to N600 million for national operators.

Under the revised policy, firms seeking a national microinsurance licence must meet the N3 billion threshold to operate across all 36 states and the Federal Capital Territory. These operators are expected to provide affordable and simplified insurance products targeted at underserved and informal sectors.

NAICOM said the move is aimed at strengthening operators’ financial capacity, particularly in meeting claims obligations, while also advancing financial inclusion.

Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, described the decision as a necessary step toward building a stronger and more reliable microinsurance sector.

He noted that poor capitalisation had previously hindered operators’ ability to expand and earn public trust, adding that improved capital buffers would enhance claims settlement and boost confidence in the industry.

“Microinsurance plays a vital role in increasing insurance coverage, but it must be backed by solid financial strength. Adequate capital will enable operators to meet obligations and grow sustainably,” Ahmed said.

Also speaking, insurance expert Kelvin Owok said the new capital requirement could lead to consolidation within the sector, as smaller operators may need to merge or expand to meet the benchmark.

He added that stronger capital would allow firms to invest in innovation, improve distribution channels and settle claims more efficiently, key factors in attracting participation from the informal sector.

The recapitalisation effort is expected to reposition microinsurance as a more credible and effective tool for expanding insurance access at the grassroots level.