NAICOM boosts insurance sector recapitalisation plan with palliatives from SEC

From left: Director, Corporate, Governance, Enforcement and Compliance, National Insurance Commission Leo Akah, Director; Market Development Department, Securities and Exchange Commission Edward Okolo; Director, Inspection, NAICOM Barineka Thompson and Member, Technical Committee on Financial Literacy, Capital Market Master Plan Implementation Committee Omagbitse Barrow during a Financial Literacy Technical Committee meeting with NAICOM.

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Chuks Udo Okonta

The management of Securities and Exchange Commission [SEC] has advised insurers to take advantage of long term investments in the capital market as they embark on recapitalisation.

The capital market regulator, as part of palliatives secured through the National Insurance Commission (NAICOM), pledged to support insurers seeking funds at the market.

These were parts of the highlights enumerated at a meeting held in Lagos today by members of the reconstituted Insurers’ Committee.

Speaking with journalists after the meeting, a member of the committee, Mrs. Ebere Nwachukwu, revealed that not less than 10 companies had approached the capital market to seek assistance towards raising funds for the recapitalisation exercise.

She assured that the commission had equally promised to render the necessary assistance within its regulatory power to support the companies, stressing that insurers should take advantage of the capital market long term investment fund to boost their finances.

She said the recapitalisation exercise was intended to strengthen the financial position of the industry.

Nwachukwu also quoted the Acting Commissioner for Insurance, Sunday Thomas, as saying that the National Insurance Commission [NAICOM] had always partnered with SEC and other relevant agencies to seek palliative for the insurance industry.

Nwachukwu, who is also the Managing Director, NSIA Insurance, also revealed that the committee prepared the minds of the operators toward the adoption of International Financial Reporting Standards 17 [IFRS 14], saying funds should be budgeted for training to make the adoption easier.

The committee also disclosed that the insurance industry rebranding had been put on hold due to poor financial response on the part of some members.

“The rebranding project has been stopped. We did because of issues regarding poor participation by operators. We have to come back to it. We are back on the drawing board,” the committee noted.

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