Over 60% of insurers will survive recapitalisation – NCRIB
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The Nigerian Council of Registered Insurance Brokers has stated that over 60 per cent of insurance firms in the country are expected to survive the ongoing recapitalisation exercise in the sector.
This was revealed by the President of the NCRIB, Babatunde Oguntade, at a press conference on Tuesday to mark the end of his tenure.
The PUNCH reports that the signing of the Nigerian Insurance Industry Reform Act 2025 has increased the capital thresholds for insurance operators. According to NIIRA 2025, the minimum capital base for non-life insurers has been raised to N15bn, while the capital requirement for life insurance firms is now at least N10bn. Reinsurance companies got the steepest increase, with their capital threshold now pegged at N35bn.
Speaking at the press conference, Oguntade said, “The recapitalisation of the industry is long overdue, and we welcome it; we support it. We know already from statistics that over 60 per cent of the existing underwriters in the market will survive. And that is good.
“What may make some people not survive is that NAICOM’s regulatory reforms have become more stringent. NAICOM will no longer wait for you to get into distress.”
On the possibility of the recapitalisation train reaching the broking segment of the market, Oguntade said that there was no need because they were not carrying any risk.
“NIIRA has brought to the fore the three major ways of becoming an insurance broker. Basically, we do not carry a list.The risk that we cover can be covered by professional indemnity. We do not hold premiums. We only hold the premium for a period that is allowed by the law. So, there is no need to recapitalise the industry. What they have done now is to say the minimum PI cover for insurance brokers is N100bn or 50 per cent of your turnover. The truth is, there will be no need for capitalisation for insurance brokers. It is uncalled for. We are not keeping the premium. We are not helping to carry any liability. Professional indemnity is sufficient for our situation,” he affirmed.v
Giving the highlight of his tenure, Oguntade said that the new building project, christened the Olola Olabode Ogunlana NCRIB Annex building, is over 70 per cent completed.
“This state-of-the-art facility will provide a modern and efficient workspace, primarily for commercial purposes. This investment in our infrastructure demonstrates our commitment to building a stronger, more resilient industry. Great kudos should go to my predecessor in office, who bought the land, while I am optimistic that my successor will give the building the desired elegant finishing.
“We’re also proud to have our own Doyen of the Nigerian Insurance Industry, Olola Ogunlana, FCIB, be awarded the Lifetime Achievement Award at the 2025 Conference of the British Insurance Brokers Association, to recognise the contributions of one of our eldest and most experienced insurance practitioners in Nigeria. I am delighted that this was done under this administration,” he disclosed.
Also speaking at the press conference, the Deputy President, Mrs. Ekeoma Ezeibe, who will be sworn in as the next President of the Council on Friday, commended Oguntade for working in the interest of the council.
“Everything we did was geared towards elevating the council from what our past presidents had put on the ground for us,” she said.
“What may make some people not survive is that NAICOM’s regulatory reforms have become more stringent. NAICOM will no longer wait for you to get into distress.”
On the possibility of the recapitalisation train reaching the broking segment of the market, Oguntade said that there was no need because they were not carrying any risk.
“NIIRA has brought to the fore the three major ways of becoming an insurance broker. Basically, we do not carry a list.
