The National Insurance Commission will support insurance companies and back their plans to merge in order to continue to exist. It will also ensure the orderly exit of companies that did not meet its requirements.
The acting Commissioner for Insurance, Mr Sunday Thomas, said this during the Chartered Insurance Institute of Nigeria’s 2020 annual business outlook seminar in Lagos, while speaking on the topic, “Recapitalisation and stability in the insurance industry- Role of the regulator.”
He said it was not interested in liquidating any company, and would ensure regulatory support by allowing unrecapitalised firms to come together and continue to operate.
While speaking on the role, he said it would, “Ensure that recapitalised companies are liquid, ensure safety of funds raised-payment into escrow account, ensure orderly exit of unrecapitalised companies, and efficient resolution of pre and post recapitalisation governance and conflict.”
Thomas said that it would continue to engage with relevant regulators on additional palliatives ongoing, and review compliance level to determine the adequacy of recapitalisation plans.
In ensuring the stability of the insurance sector, he said the commission would ensure soundness and profitability, support the stability of the financial system, build confidence in the insurance sector, and improve liquidity and ability to settle claims.
The commission, he added, would improve resilience of the insurance industry, create supply side capacity for local content utilisation, enable the industry to support big infrastructure projects, restructure existing market fundamentals and reposition the industry for the greater benefit of all stakeholders.
Thomas said the annual business outlook seminar had been a veritable platform for the insurance industry to review, analyse and project the potential of the economy and the impact of the Federal Government budget on insurance business.
He said the choice of this year’s main theme which was, “Economic policies of the government in 2020: Issues, challenges & prospects,” was expected to open the areas of opportunities where the industry could play to deepen its market.