BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission, (NAICOM) on Friday announced that it has canceled the general insurance license of Nigerian Agricultural Insurance Corporation ,(NAIC), following its inability to meet up the new minimum capital for general business.
The Commissioner for Insurance and Chief Executive officer, Mr. Olusegun Ayo Omosehin, disclosed this today during a press conference in Lagos.
According to the commissioner the company has been directed to continue its agricultural insurance business.
He said “ NAIC was set up by statute, a product of legislation established specifically to provide agricultural insurance schemes. NAICOM subsequently granted the corporation a licence to also operate general insurance business. The law that established NAIC remains in force and has not been repealed.
To that extent, Omosehin said, the corporation is still “a baby of the federal government.” If shortfalls arise from the management of the scheme, he added, the federal government will step in and provide additional funding. NAIC will therefore continue to underwrite agricultural insurance schemes for as long as that law remains in place.
“What we have withdrawn, however, is the general insurance licence that was added. It was an addition to them, which we have taken back,” he said.
Asked whether the withdrawal of the general insurance licence would create a gap in the market, he said: “There’s no gap.” NAIC will still continue to underwrite agricultural insurance business, but not general business.
He explained that NAIC’s exit from general insurance does not create a gap since other entities have already been licensed to provide that service.
He also said additional underwriting capacity for agricultural insurance is coming from other commercial insurers.
The Commissioner said NAICOM is retaining NAIC as a specialist in agricultural insurance while allowing other commercial underwriters to join that space.
