Nigerian insurance companies will be affected by the ongoing Middle East hostilities in their next reinsurance renewal period, National Insurance Commission (NAICOM) head Mr Ayo Olusegun Omosehin, has said.
At a press briefing last week in Lagos on the activities of NAICOM, the Insurance Commissioner said that Nigerian insurers cede most of their reinsurance business abroad to international reinsurers who determine the pricing, according to a report by the newspaper This Day.
He said that the war had led to large-scale destruction and losses that could expose the global Insurance market to significant claims, resulting in reinsurance rate hikes.
Currently, the Nigerian insurance sector is undergoing an exercise to increase capital. Mr Omosehin said that recapitalisation would place insurance companies on a better footing to handle claims. Under the Nigeria Insurance Industry Reform Act (NIIRA) 2025, insurers must increase their minimum capital to new prescribed levels by 30 July 2026.
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