NAICOM Considers Capital Upgrade for Takaful and Microinsurance Firms

The National Insurance Commission (NAICOM) is considering a capital upgrade for Takaful and microinsurance firms as part of the ongoing recapitalization exercise in the insurance industry. NAICOM is evaluating subsectors within the insurance industry to determine the best capital requirements for Takaful and microinsurance companies to effectively cover risks.

The regulator aims to ensure that players in the informal sector of the economy are not overwhelmed during the recapitalization process. Commissioner Olusegun Omosehin confirmed NAICOM's intention to enhance the capitalization of microinsurance and Takaful firms to improve their business operations and increase asset replacement values, emphasizing the critical nature of the exercise for the sector's growth.