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Chuks Udo Okonta
To prevent capital flight from the insurance industry, at least, five big reinsurance companies should be established in the next 10 years, the Lead Director, Transparent Protection Ltd/Gte (TPL), Dr. Sam Onyeka, has canvassed.
He said this in a presentation at the recently held public hearing of the Reform Insurance Bill at the National Assembly in Abuja.
He noted that establishment of mega reinsurance companies would help reduce the huge reinsurance funds presently ceded to foreign reinsurance firms.
According to him at this time when a risk-based capital regime is being introduced, it would be advantageous to take into consideration the advice of the International Monitory Fund (IMF) and the World Bank, stating that what Nigeria needs is not an unduly high minimum capital regime, but more capitalised reinsurance companies.
Onye has being a major voice in the insurance industry, leveraging his firm to promote growth initiatives.
Nigeria presently has two viable reinsurance firms – Continental Reinsurance and FBS Reinsurance.
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