The Chairman of Nigerian Insurers Association (NIA), Tope Smart, has implored the Nigerian Stock Exchange (NSE) to assist the insurance companies in their bid to meet the new capital level prescribed by the National Insurance Commission (NAICOM).
The commission had increased the capital requirements for insurance and reinsurance companies from N2billion to N8billion for life insurance companies, N3billion to N10billion for general business underwriters, N18billion for composite insurers and N20billion for reinsurance companies with a one year timeline for compliance.
A statement by the Controller, Corporate Communications, Human Resources & Admin of the NIA, Davis Iyasere, stated that while addressing the Director-General of the Exchange Oscar Onyema and Executive Management of the Nigerian Stock Exchange during a courtesy visit to the exchange and sounding of the Closing Gong on Tuesday, Smart solicited the support of the exchange and other players in the capital market as well as palliatives for insurance industry in their capital raising efforts.
Given a breakdown of the Insurance Companies in Nigeria, the NIA Chairman noted that out of 59 Insurance Companies comprising 14 specialist life insurance companies, 28 General Insurance companies, 13 composite insurance companies, two takaful insurance companies and two reinsurance companies, 32 insurance companies are listed on the exchange.
He declared the Association’s support for the exchange and welcomed the initiatives aimed at strengthening the cordial relationship existing between the Association and the Exchange.
Responding to the issues raised by the NIA Chairman, Director-General of the Nigerian Stock Exchange Oscar Onyema, commended the Association for increasing its advocacy efforts and expressed joy at the increasing participation of the Insurance Companies on the floor of the exchange.
He described the Insurance sector an important sector of the economy that is too critical to be ignored while promising to assist insurance companies in their bid to meet the new capital requirement.
Speaking on some initiatives of the Exchange, Onyema stated that the exchange will soon introduce some derivatives to take care of takaful insurance products, even as he urged the Insurance Companies to make use of its knowledge sharing platform in its capacity building and corporate governance training.
Director-General of the Association Mrs. Yetunde Ilori, while thanking the Director-General of the Nigerian Stock Exchange and his executives for the opportunity to visit and exchange ideas on how collaborate for the benefit of Insurance Companies, appreciated them for their support in releasing longer tenured fixed income instruments which insurance companies can leverage on for greater value for their long term products.