Tony Elumelu proposes increase in capital base of life insurance companies to N20bn, non-life to N30bn
By Matthew Denis
The Chairman of Heirs Holding Group and United Bank of Africa (UBA), Chief Tony Elumelu has proposed an increment for the capital base of Life Insurance companies to N20billion and that of Non Life Insurance to N30billion.
He made the disclosure during his keynote address at the opening session of the National Insurance Conference held in Abuja.
Delivering his speech, Elumelu said, “I propose we should increase the capital base of insurance companies to N20billion for life and N30billion for Non Life.
“We review the dichotomy in insurance authorisation, licences between the Life and Non Life while consolidated operators should have N50billion and let us use regulation to shape behavior and enforce compliance.
Elumelu tasked the National Insurance Commission (NAICOM) to focus on substance and things that shape the sector. He urged the regulator to focus on more important aspects of regulations and save taxpayers money for more catalytic action.
He advised all insurers to mandatorily contribute 0.5 percent of their revenue to drive industry awareness for five years which the Nigerian Insurance Association should administer professionally.
“Insurance broker capital base should be increased to N1billion and the regulator should allow the brilliant minds to come into the insurance sector thereby limiting years of experience to technical areas,” he said.
According to Elumelu, “With the right foresight and enabling environment, we shall see the transformation of the insurance sector in Nigeria. Let us emphasise that the regulator and the government have a critical role to play in ensuring that insurance becomes the right of every citizen in the country.
“In a society where the people are not insured they are exposed to financial uncertainties which do not only affect them but entire families and communities.”
Elumelu urged all hands to be on deck to reassure and eliminate the stifling policies, roadblocks and complacency in the insurance system by encouraging innovation and simple accessibility not as an option but a fundamental right to secure the future.
