Insurance

Six insurance firms eye merger, as NAICOM unveils post recapitalisation commitments

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Chuks Udo Okonta

About six companies have indicated interest in merger/acquisition, the National Insurance Commission (NAICOM) has said.

The Director, Policy & Regulation Directorate, NAICOM, Pius Agboola, who is also Chairman, Insurance industry Recapitalisation Committee, said this at the interactive session with shareholders association of quoted insurance companies in Lagos, adding that 44 underwriting firms have received regulatory approval to continue with implementation of their recapitalisation plans, while the plans of six companies was not appropriate and they have been asked to make amend and re-submit.

He noted that two insurers plans are currently undergoing review while two insurers are yet to submit their plans at all, a development he attributed to perculiar situation the erring companies are currently undergoing.

Agboola

Agboola also used the event to unveiled the commission’s commitment post recapitalisation, noting that there is no doubt that the growth potentials of insurance in Nigeria is huge, hence, NAICOM has decided to put more emphasis on market development to enable investors have value for their investment.

“In doing the above, other prudential issues and market conduct and practice will be put close attention at in order to put companies on tract for the achievement of shareholders’ expectation.

“As a stakeholder in ensuring that investors has value for their money, NAICOM make commitment to develop and deploy appropriate framework for enforcement of compulsory insurances,” he said.

Continuing, he posited that the commission would also deploy information technology in the insurance sector; ensure Risk Based Supervision (RBS); appropriate and relevant distribution model; improve insurance awareness, better corporate governance oversight and effective collaboration with relevant sectors.

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