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Nigeria: Insurance Operators Seek Extension of Recapitalisation Deadline

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Barely six weeks to the December 31 deadline for the insurance sector recapitalisation, operators have implored the National Insurance Commission (NAICOM) to extend the deadline.

It was gathered that the insurers made the appeal to the regulator during a meeting of chief executive officers in the industry with the commissioner for insurance at the industry’s professionals’ forum held in Abeokuta, Ogun State recently.

They pointed out the Covid-19 outbreak and recent civil unrest and its consequential losses as their reasons for the request.

The underwriters, implored NAICOM to also consider their challenges by amending some of the requirements in the recapitalisation exercise for the sector.

They 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.

The executives said the operators had earlier appealed to the commission, to waive the December 2020 milestone.

“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 31 December, 2021,” one of the operators who pleaded to remain anonymous said.

They said the operators were more concerned about the aspect relating to attainment of certain thresholds by December 2020, failing which the commission may restrict the scope of business insurance and reinsurance companies will transact.