President Muhammadu Buhari, Managing Director, Access Bank Plc Herbert Wigwe and the Director-General of the Budget Office of the Federation, Mr Ben Akabueze, have expressed strong support to the National Insurance Commission’s recent recapitalization policy.
The Insurance Industry Consultative Council (IICC), which comprised all insurance firms, brokers and other stakeholders, has also expressed support to the policy.
Recall NAICOM recently announced base capital raise for all insurance companies in Nigeria and gave them 30th June 2020 to recapitalize or be shut down.
Speaking, yesterday, in Abuja at the 2019 National Insurance Conference with theme ‘Disruption, Innovation and Business Growth’ organised by the IICC, the president said it is critical the insurance industry recapitalized to be financially capable to enable local risk retention and prompt payment of claims.
Represented at the event by the Permanent Secretary in the Ministry of Finance, Mahmoud Isa-Dutse, the President said, “The insurance sector plays a vital role in the financial sector because it reduces the poverty line, assists people to manage their risks, protect them from adverse effects due to unforeseen circumstances and increases access to other financial services.”
The Managing Director/CEO, Access Bank, Mr. Wigwe also said “relative to the size of the Nigerian economy and the opportunities it offers, the insurance sector needs serious capitalisation to increase its capacity to underwrite transactions in sectors such as oil and gas, marine, aviation, and technology.”
Mr. Wigwe also spoke on other ways to make the insurance sector grow. He said strategic alliances and partnerships will be key, thus traditional insurance companies must partner with upcoming Insurtechs so they are able to explore growth opportunities.
Commenting, Alhaji Mohammed Kari, the Commissioner for Insurance, said the theme is pertinent against the backdrop of “the need for the Nigerian insurance industry to remain relevant in an era of dynamism where operating in the same way is an assured route to irrelevance.”