The National Insurance Commission (NAICOM) has restated that the recapitalisation of insurance companies has the huge potential to cause a positive shift in the market and overall economic health of the country.
This was disclosed by the Deputy Commissioner (technical) of NAICOM, Mr Sunday Thomas, who sat for the Commissioner of Insurance, at the seminar for insurance correspondents which held in Ijebu ode over the weekend.
According to him, “We are in a very sensitive period in the Commission in the sense that the issue of capitalisation has always been viewed as a policy initiative, which to the operators most find it difficult to see the benefits at the takeoff point, but which the policy regulator sees as a way to cause a shift in the system.
“As an agency of the federal government, more than ever before, we want to be visible. We also clearly want to do all that we can within our terms of reference as an institution to prove our contributions to the economy.
“This cannot be done without the contributions of operators, development partners and other stakeholders – shareholders represented by board of directors, staff of operating companies and other regulators.”
He further added, “As a nation this is an election year, and we know that there are a lot of expectations from the political end that finds itself translating to the economy. The insurance sector want to be part of the big game; the driver of that initiative has to be the regulator.
“Of course there are shades of opinions about it’s adequacy, timing etc., however, in quick succession, we want to prosecute this recapitalisation like never before it.
“The whole idea of this recapitalisation exercise is to have an industry that is strong, that is diligent in prosecution of its assignment, that is highly luquid in terms of being responsible and prompts in claims settlement, that is solid in terms of assets, that is visible in terms of retaining businesses in our environment.
“We believe that at the end of this exercise, we want to turn around the image of this market. We have the mandate to ensure that this recapitalisation exercise throws up very solid companies.
“We are engaging other regulators for cooperation for the success of the exercise. Our arms are open to welcome investors either I to existing companies or a totally new company.
“What is important to us is to have an industry that is solid, that is able to support the government in its initiative, that is able to create employment by its reason of expansion, and at the end of it is able to add value to our economy.”