Here, the new capitalisation introduces proportionate capital that supports the nature of insurance business, even as the scale and complexity of the business conducted by insurers mean the industry must undergo risk-based recapitalisation.
While there are already wide consultations among the regulator, operators and relevant stakeholders to ensure the new exercise is not obstructed like the two previous exercises, the regulatory body would borrow its power from the 2020 Consolidated Insurance Bill that is currently at an advanced stage of being passed into law.
At a separate event, the chairman, Nigerian Insurers Association , Ganiyu Musa, said the Consolidated Insurance Bill was already at an advanced stage as relevant stakeholders’ contributions had been included with the final vetting ongoing, with the bill expected to be passed into law soon. According to him, there is need for increased capacity in the Nigerian insurance industry, even though the capacity of the industry had increased over time.
“The capacity is growing but we need to back it up with technical know-how, training and retraining of staff. Insurance industry should keep pace with the trend of events globally because the insurance business is an international business.