By Rosemary Onuoha
Following the economic challenges brought about by the Coronavirus (COVID-19) pandemic and the EndSARS protests, insurance companies have appealed to the National Insurance Commission, NAICOM, to amend some of the requirements in the recapitalisation exercise in the sector.
The companies urged NAICOM to extend the recapitalisation deadline to December 2021 from September 2021 as well as waive the first phase of its segmented recapitalisation for the insurance and reinsurance companies scheduled to end by December 31, 2020.
Speaking during a meeting of insurance companies’ chief executive officers with NAICOM, at the industry’s professional forum in Abeokuta, Ogun State, the operators said the support of the regulator would assist to build strong underwriting companies and boost investors’ confidence in the sector.
Some of the executives who attended the meeting disclosed that they made a request for the recapitalisation exercise process to be concluded in December 2021, while the interim milestone assessment scheduled for December 2020 be stepped down.
A chief executive who spoke on the condition of anonymity said: “The waiver will give the insurance and reinsurance companies more time to settle back to business and pursue their full recapitalisation programme in order to meet the Commission’s set objectives by 31st December 2021.”
According to him, the aspect relating to attainment of certain thresholds by 31 December 2020, failing which the Commission may restrict the scope of business insurance and reinsurance companies will transact, should be waved.
He said: “Operators observed the huge impact of COVID-19 on the financial services sector and the national economy at large, coupled with the situation that was worsened by losses from the nationwide #EndSARS protests.
“We are convinced that it will take businesses, especially insurance companies some time to ascertain the full extent of losses and recover from the shock of the devastating developments.”