NAICOM to issue new insurance recapitalisation guidelines

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By Shorunke Tunde

The National Insurance Commission (NAICOM) says it will release a new recapitalisation guideline for insurance and reinsurance companies after the COVID-19 pandemic.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Sunday Thomas made this known via an online meeting with insurance stakeholders titled ‘Post COVID- 19: Impact on the Insurance Industry’.

Thomas said that the pillars that formed the initial recapitalisation objectives like consolidation, foreign direct investments and local investors have been hindered unrealistic by the pandemic.

According to him, “the commission is re-strategising, factoring this into the scene and creating different models to see which will be more result-oriented.

“The game has changed. Immediately we are pitched out of this pandemic, of course, we are going to release a new guideline with respect to the insurance recapitalisation exercise.

“The Commission will be coming up with a structured way to ensure that the industry will have the necessary data to drive the business.

“We will look into our service delivery and awareness creation,’’ he assured.

Thomas, who described insurance as sensitive, appealed to brokers and underwriters to improve their response to claims payment.

Meanwhile, the Executive Director of AXA Mansard Insurance Plc, Rashidat Adebisi has appealed to operators to leverage opportunities created by the pandemic to build innovations that would improve the sector.

Also speaking on the effect of the pandemic on jobs in the sector, the Group Managing Director of Cornerstone Insurance Plc, Ganiyu Musa urged employers to communicate to employees in a humane manner.

“What I tell people is that your best guarantee for job protection is improvement and efficiency. Clearly, no organisation will like to lose their most important resources.

“Communication is key, employers must communicate clearly in an unambiguous manner,’’ he said.

However, NAICOM had fixed the deadline for recapitalisation of the insurance and reinsurance companies for June 30, 2020 but later extended it to Dec. 31, 2020 before the pandemic.

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