Elumelu Proposes Increased Capital Base For Underwriters, Brokers
The Chairman of Heirs Holding Group and United Bank of Africa (UBA), Tony Elumelu has proposed N50 billion capitalisation for composite insurers in the country, while Life and Non-Life companies increase their capitalisation to N20billion and N30billion respectively.
Elumelu spoke at the opening session of the National Insurance Conference held in Abuja on Monday, where he also advocated an increase in capitalisation for insurance brokers.
“I propose we should increase the capital base of insurance companies to N20 billion for life and N30 billion for non-life”.
“We review the dichotomy in insurance authorization, licences between the Life and Non-Life while consolidated operators should have N50billion and let us use regulation to shape behaviour and enforce compliance.
“Insurance broker capital base should be increased to N1billion and the regulator should allow the brilliant minds come into the insurance sector thereby limiting years of experience to technical areas.
Elumelu tasked the National Insurance Commission (NAICOM) to focus on the substance and things that shape the sector and to stop approving adverts.
“Use that time for more important aspects of regulations and save taxpayers money for more catalytic action”, he stated as he advised all insurers to mandatorily contribute 0.5 percent of their revenue to drive Industry awareness for five years and which the Nigerian Insurance Association should administer professionally.
According to him with the right foresight and enabling environment, we shall see the transformation of the insurance sector in Nigeria.
He said “Let us emphasize 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’re exposed to Financial uncertainties which don’t only affect them but the 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 as a fundamental right to secure the future.