NAICOM To Inspect Underwriters’ Books Ahead Recapitalisation Deadline
AMINA HUSSAINI, Kano
With insurance underwriters firming up their recapitalisation plans, the National Insurance Commission (NAICOM) will begin inspection of their books to determine their compliance with its directives on new capital injection.
Acting Insurance Commissioner Sunday Thomas disclosed the commission has requested firms that have advanced in their recapitalization to submit their plans to determine the next stage or whether there is need for modification.
This is the second time the commission will be requesting for underwriters’ plans on recapitalisation. The first was last year to check whether the companies are moving the appropriate way.
“Quite a number of firms have been told to submit their plans and they have signified readiness for inspection. Our team will soon go there to check their books’, he said.
The sector regulator had last year requested the insurance underwriters to inject more capital depending on their lines of business in a reform which is targeted at a more liquid industry.
Thomas who also noted that the industry had battled buy-in from stakeholders on compulsory insurance to bolster the industry’s earnings, informed that the sector regulator, National Insurance Commission (NAICOM) now considers teaming up with security agencies, state government and local government councils across the country to implement measures to boost the industry.
Thomas who spoke Monday on ‘Strategic focus of the Commission in the year 2020: From Compliance to Development” at Insurance Reporters’ Conference in Kano said adequate measures had been put in place to ensure buy-in of every stakeholder 2020 while acknowledging challenges that had stalled implementation of Compulsory
insurance
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“Going forward, we shall vigorously pursue the continued implementation of Compulsory Insurances in every nook and crannies of the Country. We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance thus far hence, our resolve to work with relevant stakeholders to ensure a seamless drive”.
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“Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic National Assets. We will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance” he added.
Speaking on the recapitalization of the sector which deadline is now shifted to December 2020, he noted that the commission for years has been battling enforcement of Compulsory insurance but only able to achieve two of three stages set out for
compulsory Insurance which is awareness and education while the third component,- development of
enforcement is yet to be realized.
Thomas disclosed that increase in a capital requirement for both life and non- life insurance was long overdue in an industry that requires robust in technical competence and financial base that will build confidence, trust and enhance its market value.
“This aims at repositioning the sector for self-actualization in terms of growth and development”.
Speaking on NAICOM action plan 2020, the Insurance Chief said the regulator would deepen financial inclusion strategy already embarked on in the preceding year as the sector will not want to lag in a strategy that is central to the federal government’s developmental plan.
He hinted of the huge investment by the commission in the development of financial inclusion mechanisms such as Micro-insurance and Takaful Insurance products which are intended to deepen the market and bring more into the insurance net.
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