NAICOM upgrades minimum capital for microinsurance firms to ₦3bn

The National Insurance Commission (NAICOM) is set to increase the minimum capital base for microinsurance firms from the previous tiered levels to a uniform ₦3 billion. 

Under the previous structure, unit microinsurers were required to hold ₦40 million, state microinsurers ₦100 million, and national microinsurers ₦600 million.

This change is part of the Nigeria Insurance Industry Reform Act (NIIRA) 2025, which outlines the new minimum capital requirements for operating firms. 

While the Commission had already established capital bases for life insurance at ₦10 billion, general business at ₦15 billion, and reinsurance at ₦35 billion, it had previously remained silent on the specific requirements for the microinsurance sector.

Sources indicate that NAICOM may finalize the ₦3 billion uniform requirement this month. This move replaces the older tiered system and aims to strengthen the financial capacity of operators to provide nationwide coverage for low-income populations.

According to the new guidelines, microinsurance targets low-income individuals, micro-entrepreneurs, and underserved communities. These products must feature simplified policies with low-value, easy-to-understand terms tailored to their specific market. Distribution channels will include agents, cooperative societies, non-governmental organizations (NGOs), faith-based organizations, and mobile payment systems.