National Insurance Commission (NAICOM) said it has commenced a two-year licence renewal regime for insurance brokers and loss adjusters.
This is as Acting Commissioner for Insurance, Mr Sunday Thomas, disclosed that the commission will soon unveil the second phase of Market Restructuring Development Initiative (MRDI).
Director, Policy and Regulation Directorate, Pius Agboola, in a paper on Monday, during a seminar for insurance journalists, disclosed that NAICOM had already released a guideline for the extension of licences of brokers and adjusters to two years.
While clarifying that no insurance company had yet met the recapitalisation requirements, Agboola said the commission will also soon embark on verification of capital.
He said, in 2020, the Commission will continue on the industry recapitalisation aimed at increasing industry’s capacity that will enhance local retention and improve industry’s premium and ability to pay claims as well as protect shareholders investment, among others.
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He explained that in 2019, NAICOM continued with financial inclusion initiatives, which led to the approval given to two new microinsurance companies and two Takafu insurance companies as well as championing the West African Regional Integration that will promote cross-border transactions.
Others are the finalisation of the code of corporate governance (adoption of National Codes); capacity building and awareness creation for implementation of International Financial Reporting Standard 17 (IFRS 17) ahead of its commencement in 2022’ among others.
Earlier in his welcome address Acting Commissioner for Insurance, Sunday Thomas, said, “going forward, we shall vigorously pursue the continued implementation of Compulsory Insurances in every nook and crannies of the Country.
“We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance thus far hence, our resolve to work with relevant stakeholders to ensure a seamless drive.”
While stating that the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of strategic National Assets, he promised that the commission will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.
On the ongoing recapitalisation exercise, he said, the essence of the recapitalisation is a move to ensure that insurance industry becomes more robust in its technical competence and financial base, building confidence, trust and enhancing market value.
The move he said was aimed at repositioning the sector for self-actualisation in terms of growth and development.
The Commission shall continue to deploy more energy and resources in building public trust and confidence in insurance despite years of poor perception, he promised.
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