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.
This plea was made during a meeting of the chief executives of all the insurance companies with the insurance commissioner at a recent industry forum, reported Nairametrics.
The insurers explain their request citing the impact on their business as a result of the COVID-19 pandemic and #EndSARS protests in October.
NAICOM had initially scheduled the recapitalisation deadline for 1 January 2019 but deferred the date to 30 June 2020. Later, a new timeline was set, mandating 50% of the new minimum paid-up capital for insurance companies and 60% for reinsurance companies to be met by 31 December 2020 and with the second and final tranche to be met by 30 September 2021.
NAICOM stated that insurance companies that failed to meet the first deadline of 31 December 2020 might face restrictions on their scope of business.
Some of the executives who attended the industry forum told This Day that they had made a request for NAICOM to allow insurers to complete the recapitalisation exercise at in a single process by December 2021.