Recapitalisation: NAICOM to collaborate with security agencies to ensure implementation- Thomas

To ensure for full compliance of its recapitalisation policy, the National Insurance Commission (NAICOM) has resolved to collaborate with relevant security agencies, Acting Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Sunday Thomas has said.

He said the collaboration will spend across security agencies both at federal, state and local government to ensure smooth compliance and enforcement.

Thomas stated this at the ongoing seminar for insurance Journalists in Kano tagged, “Strategic focus of the Commission in the year 2020: From compliance to development.”

The NAICOM boss noted that adequate measures had been put in place to ensure buy-in of every stakeholder in 2020 while acknowledging challenges that had stalled implementation of Compulsory insurance.

According to him, going forward, we shall vigorously pursue the continued implementation of Compulsory Insurances in every nook and crannies of the Country. We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance thus far. Hence, our resolve to work with relevant stakeholders to ensure a seamless drive.

“Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic National Assets. We will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance”, he said.

Speaking on recapitalization of the sector whose deadline has been shifted to December 2020 inline with stakeholders unanimous request, Thomas said  the Commission for years has been battling enforcement of Compulsory insurance.

But added that the Commission has been able to achieve two of three stages set out for compulsory Insurance which are awareness and education leaving the third component which is enforcement that is yet to be realized.

Speaking further, he disclosed that the increase in a capital requirement for both life and non- life insurance was an exercise long overdue.

“The initiative to recapitalise the insurance sector is no longer news. The essence of the recapitalization is a move to ensure that the industry becomes more robust in its technical competence and financial base, building confidence, trust and enhancing market value.

“This is aimed at repositioning the sector for self-actualization in terms of growth and development. I wouldn’t want to dwell much on this as the paper presenters will be giving us update on this initiative. But let me state in clear terms that the recapitalization process is up and running in line with the roadmap and the commission will see to its logical conclusion come December 31, 2020,” he added.

On the Commission’s  action plan  for the new year, he said the regulator would deepen financial inclusion strategy already embarked on in the preceding year.

“The financial inclusion strategy has been central to the federal government developmental plan and the Commission has over the years invested hugely in the development of financial inclusion mechanisms which includes the introduction of Microinsurance and Takaful Insurance products.

“The introduction of these lines of insurance is intended to deepen the penetration of insurance in the country and bring into the fold majority of the populace that are hitherto excluded.

“So far, some milestones have been recorded in this regard with three standalone Microinsurance and four Takaful insurance companies already granted approvals”.

” The Commission shall continue to deploy more energy and resources in building public trust and confidence in insurance despite years of poor perception”, he explained further.

He added that the Commission is also planning to launch a portal to integrate growth of the business of underwriting. 

He disclosed that, in view of  ongoing recapitalization exercise, NAICOM has asked  some insurance firms that have gone far in the process to submit their plan.

“Quite a number of firms have been told to submit their plans and they have signified readiness for inspection and our team will soon go there for inspection to see the level of compliance” he added.