Covid-19: NAICOM releases forbearance palliatives for insurance sector

In a bid to ensure that insurance business and policyholders are protected during the COVID-19 Movement Restriction, the National Insurance Commission (NAICOM) on Wednesday rolled out regulatory forbearance for the industry.

This is contained in a circular to insurance operators with referenced numbers, NO: NAICOM/DPR/CIR/29/2020, 01 April 2020 signed by the Director Policy and Regulation, Pius T. Agboola, said the forbearance are as follows:

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“Where Approval-In-Principle for the preceding insurance period had been granted, all renewals or extensions of the foreign reinsurance proportions that become due during COVID-19 movement restriction are permitted for renewal on existing basis.

“Where Approval-In-Principle for the foreign proportion of a new insurance placement is required during the COVID-19 movement restriction, it shall be treated on the basis of “Use and File” subject to prior exhaustion of in-country capacity.For the avoidance of doubt, after utilizing available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentation to the Commission thereafter.

“All Post Placement Reports, Reinsurance Treaties and other related special risk foreign reinsurance documentation due for submission during the pendency of theCOVID-19 restrictions are to be submitted when movement restrictions are lifted.”

The commission added that all insurance/reinsurance placements shall be done in accordance with other relevant extant insurance laws, regulations and guidelines while all submissions to the Commission including the hard-copies sequel to the above forbearance shall be done not later seven (7) days from the end of COVID-19 Movement Restrictions.

The commission called on all to be diligent, circumspect and supportive of Government in its efforts to tame the COVID-19 Pandemic.

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Ihesiulo Grace

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