NAICOM extends insurance industry recapitalisation by a year

Isola Moses | ConsumerConnect

In respect of the far-reaching effects of Coronavirus (COVID-19) epidemic on individuals and businesses in the country, Nigeria’s National Insurance Commission (NAICOM) has given insurance underwriters an additional year to recapitalise as the companies contend with the fallout of the disruptive pandemic.

Agency report states that the Commission, in e-mailed statement, said the industry recapitalisation programme originally scheduled to end in 2020 would now be completed by September 2021.

The statement said: “The incidences of COVID-19 pandemic have made it difficult to proceed with the Dec. 31, 2020 recapitalisation deadline.”

Underwriters are expected to meet at least half of the capital requirements by year-end in connection with the fresh extension of the deadline for recapitalisation, it submitted.

It is recalled that the Nigerian authorities in 2019 required insurers desiring to combine life and property and casualty businesses to raise their capital to N18 billion ($46 million) from current N5 billion, with the minimum for property and casualty businesses increased to N10 billion from N3 billion.

The requirement for life insurance is N8 billion, versus N2 billion, and that for reinsurance is N20 billion compared to N10 billion.