A few insurance companies have approached the Securities and Exchange Commission as part of their efforts to raise capital to meet the National Insurance Commission’s recapitalisation requirements.
This was disclosed by operators during a meeting in Lagos by members of the reconstituted Insurers’ Committee.
The management of Securities and Exchange Commission has also advised insurance companies to take advantage of long -term investment in the capital market.
In a chat with the press after the meeting, a member of the committee, Mrs Ebele Nwachukwu, said that not less than 10 companies had approached the capital market to seek assistance towards raising funds for the recapitalisation exercise.
She assured that the commission had equally promised to render the necessary assistance within its regulatory power to support the companies, stressing that insurers should take advantage of the capital market’s long- term investment fund to boost their finances.
Nwachukwu said the recapitalisation exercise was intended to strengthen the financial position of the industry.
She also quoted the acting Commissioner for Insurance, Mr Sunday Thomas, as saying NAICOM had always partnered with SEC and other relevant agencies to seek palliative for the insurance industry.
Nwachukwu, who is also the managing director, NSIA Insurance, also said that the committee prepared the minds of the operators toward the adoption of International Financial Reporting Standards 17 [IFRS 14].
She said funds should be budgeted for training to make the adoption easier.
The committee also disclosed that the insurance industry rebranding had been put on hold due to poor financial response on the part of some members.