The recent revocation of licences for six insurance companies by the National Insurance Commission (NAICOM) has raised significant concerns among thousands of insurance policyholders, with many expressing anxieties over the implications for their claims and the status of their premium contributions.
The revocation followed an industry-wide recapitalisation exercise mandated by NIIRA 2025, which successfully attracted about N720 billion in new capital contributions.
While 43 insurers have met the necessary criteria, six, including Goldlink Insurance Plc, Staco Insurance Plc, NICON Insurance Limited, Nigeria Reinsurance Corporation, Royal Exchange Prudential Life Assurance Plc, and Universal Insurance Plc, have not.
As stipulated in Section 212 of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, policyholders are meant to be settled from the Insurance Policyholders’ Protection Fund (IPPF), funded by the contribution of 0.25 per cent of insurers’ and reinsurers’ net premium income annually to reinforce the safety net for policyholders.
In the wake of the recapitalisation exercise, NAICOM introduced the Guidelines for the Collection, Management, and Administration of the Insurance Policyholders’ Protection Fund (IPPF).
