Nigeria: Regulatory ins. capital raised 3 times
Friday, 07 27 2018, Category: Insurance and Reinsurance, Country: Africa
The National Insurance Commission (NAICOM) has raised the capital base for firms from N2 billion to N6 billion operating in the insurance sector, with effect from January 1, 2019.
The new recapitalisation exercise is a three-tier recapitalisation system, whereby firms were graded as tier-three, tier-two and tier-one.
The commission disclosed this in Lagos wednesday, at the insurers' committee meeting.
According to the insurance sector regulator, the new capitalisation system tagged, "Recapitalisation of insurance companies, the tier-based minimum solvency capital,' would be based on risk-based supervision model.
Releasing the modalities for the new capital base, the NAICOM Director of Supervision, Mr. Thompson Barneka, operators of life insurance business whose current minimum required capital is N2 billion and who want to continue underwriting businesses that fall under tier-1 category, they would have to shore up their capital to N6 billion, effective from January 1, 2019.