Brokers have advised insurers to focus on growing the industry as they prepare for the new recapitalisation regime.
The brokers under the umbrella body of the Nigerian Council of Registered Insurance Brokers (NCRIB) spoke with reporters in Lagos.
NCRIB President Shola Tinubu said they focus on how to boost the industry.
He said the Council has put some committees in place to see how the new policy would affect their members, adding that some consumers were expressing concerns on how the policy would affect them.
He said anytime the insurers market went into a flux, it becomes a challenge for brokers to guide their clients on the best security to adopt.
He assured that the NCRIB will support their members through the emerging challenges.
He said: “It is noteworthy that to ensure a more virile insurance industry, the National Insurance Commission (NAICOM) recently announced new capital regime for insurance companies. The new capitalisation system tagged, ‘Recapitalisation of insurance companies, the tier-based minimum solvency capital,’ would be partially introducing the risk-based capital model in a three-tier recapitalisation system, whereby firms would be graded as tier-three, tier-two and tier-one.
“However, it is noted that the tier system is independent of the assessment for solvency. Such that companies classified as Top Tier could possibly have significant solvency issues.
“Invariably, insurance companies would be looking at different options to respond before the deadline of January 1, 2019. It is definite that several options would be contemplated by the companies, including the options of injection of capital, mergers and acquisitions. Whichever strategy chosen and no matter how disruptive, I would like to enjoin the companies to focus on how to grow the insurance industry as well as how to make insurance an imperative.’’
