The National Insurance Commission (NAICOM) is proceeding with its plans for various policies and initiatives to develop the insurance sector despite challenges such as the suspension of the recapitalisation exercise, COVID-1, #EndSARs and others.
The National Insurance Commission (NAICOM) has announced the suspension of the recapitalisation exercise for insurers and reinsurers, following a court order issued 10 days before the first tranche of the exercise was to have taken effect on 31 December.
The House of Representatives has directed the National Insurance Commission (NAICOM) to suspend the planned 31 December 2020 deadline for the first phase of a recapitalisation exercise by insurers. The House said the suspension should last for six months till June 2021.
The National Insurance Commission (NAICOM) is compiling the list of insurance companies for necessary regulatory sanctions over unsettled claims which industry experts have estimated to be over NGN40bn ($105m).
Insurers are urging the National Insurance Commission (NAICOM) to extend the recapitalisation deadline for the industry and to waive the 31 December 2020 deadline for the first phase of the recapitalisation exercise.
The insurance and pension sectors and other stakeholders have called for the urgent review of legislation guiding investments in various sectors of the economy in order to allow real sector operators access to long-term funds.
Insurance firms in Nigeria are readying for potential claims, following the widespread looting and destruction of properties, vehicles, and other assets across the country on 21 October.
Insurance penetration could rise to 3.69% in the next 10 years from the present 0.06% if the technological infrastructure and data necessary for its growth are made available, say industry analysts who appeal to government and regulators to play their roles well.
Nigeria's substantial oil and gas reserves, its young and growing population and its position as Africa's largest economy continue to point to significant development potential for its insurance sector, notes AM Best.
The Nigerian insurance industry is losing millions in foregone premiums with estimates that 9.64m vehicles hold fake motor insurance papers or are uninsured. A few which had genuine insurance policies failed to renew them when the motor insurance cover expired.