BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission, NAICOM, has advised operators to begin to take steps toward recapitalization ahead of the commencement of Risk Based Capital.
The Head, Communication & Stakeholders Management Sub-committee and Managing Director Rex Insurance Limited Mrs. Ebelechukwu Nwachukwu, disclosed this while briefing journalists on the outcome of the 16th edition of Insurance Industry Committee meeting, held yesterday in Lagos.
The commission said “as a company we should evaluate ourself and if there is need to raise capital we should do so by speaking to our board and shareholders ahead of RBC takeoff date. “
“The commission wants us to focus our attention significantly on the implementation of the ten years insurance industry strategic plan that we all discussed and agreed to commits to it to enable the insurance industry achieve its objectives by 2027.”
On the insurance bill 2024, she said the commission charged us to pay specific attention on the legal framework of the bill.
It is believed that the delay in passing the Consolidated Insurance Bill is pulling the plug on efforts to adopt the RBC a recapitalisation model that allows insurance companies to take risks based on the size of their capital.
The Bill, which has been in the pipeline for over 14 years, will allows the Commission to implement RBC among other important industry reforms.
Operators itself is convinced that the risk-based capital adequacy template is the best fit for the insurance industry in Nigeria.
