NAICOM NIA disagree over recapitalization of insurance firms-Vanguard

NAICOM NIA disagree over recapitalization of insurance firms-Vanguard

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NAICOM NIA disagree over recapitalization of insurance firms

The National Insurance Commission, NAICOM, and the Nigerian Insurance Association, NIA, have disagreed over the appropriate recapitalisation model for insurance firms.

While NAICOM has stipulated the general capital requirements for the different categories of the insurance business and mandated that operators must meet the requirements by December 2021, the NIA is canvassing for Risk Based Capital, RBC, arguing that this will make the insurance industry attractive to investors and save about N77 billion payout as cost of recapitalizing.

NAICOM mandated life insurance firms to raise their minimum paid-up capital of N8 billion, up from N2 billion; general insurance companies are to increase their paid-up capital to N10 billion from N3 billion.

READ: Universal Insurance Gets NAICOM Approval To Underwrite Agric Insurance

Composite insurance (those that operate both general and life insurance) are to increase theirs to N18 billion from N5 billion, while reinsurance businesses are to beef up theirs to N20 billion from N10 billion.

NAICOM NIA disagree over recapitalization of insurance firms

But the NIA is seeking the introduction of Risk Based Capital describing it as the right capital model for the insurance industry.

Read more at: https://www.vanguardngr.com/2020/12/naicom-nia-disagree-over-recapitalisation-of-insurance-firms/

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