CFI, NAICOM, Olusegun Omosehin

The National Insurance Commission (NAICOM) said it will release a new framework in October to review the size of risk portfolios held by insurance companies in relation to their capital levels under the Minimum Capital Requirement (MCR) regime. The Commissioner for Insurance, Mr Olusegun Ayo Omosehin, disclosed this on Friday in Lagos during a press briefing to give an update on the just-concluded recapitalisation exercise in the insurance industry under the Nigerian Insurance Industry Reform Act NIIRA 2025. Omosehin explained that the MCR represents the least capital an insurance entity is permitted to hold, and that companies with large risk exposures would be required to match them with appropriate levels of capital. “We will then begin to look at the size of the portfolio of risk an entity holds in relation to the capital that they have. The Minimum Capital Requirement. The minimum is the least an entity can have,” he said. According to him, depending on the size of an insurer’s portfolio, an entity holding a huge amount of risk would need to match it with adequate capital. He added that some insurance companies might need to seek additional capital once the parameters and framework are established.

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