Tuesday, April 20, 2021
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • INNOVATION
  • EMPIRE
  • OPINION
  • CULTURAL CURRENTS
  • Features
  • AE Magazine
  • CORPORATE RENDEZVOUS
Financial Street is a meeting point for technology, economy, and journalism.
No Result
View All Result
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • INNOVATION
  • EMPIRE
  • OPINION
  • CULTURAL CURRENTS
  • Features
  • AE Magazine
  • CORPORATE RENDEZVOUS
Financial Street is a meeting point for technology, economy, and journalism.
No Result
View All Result

Recapitalisation: Expert urges NAICOM to convert failed firms to micro-insurers

Olamiposi Oluwaseyi by Olamiposi Oluwaseyi
September 19, 2019
in Front Page
0
Recapitalisation: Expert urges NAICOM to convert failed firms to micro-insurers
0
SHARES
16
VIEWS
Share on FacebookShare on TwitterShare on LinkedInShare on WhatsApp

As insurance companies make various efforts to meet up with the recapitalisation programme, the National Insurance Commission has been advised to ensure that no company dies, but should convert to micro-insurance firms those that fail to scale the hurdles.

Making this assertion, the Managing Director/Chief Executive Officer of Achor Actuarial Services Limited, Mr Pius Apere, noted that converting failed insurers to micro-insurance firms would deepen the micro-insurance segment of the market.

READ ALSO

Nigeria spending too much, says minister

‘Emerging markets to generate $10tn by 2023’

At the annual conference of the National Association of Insurance and Pension Correspondents in Lagos, Apere said it would be ideal to covert the failed insurers to micro-insurance firms as they already have the required capital to operate in the sub-sector.

Read Also:

  • EACOP worth pursuing, beneficial to Tanzanian, Ugandan communities
    EACOP worth pursuing, beneficial to Tanzanian,…
  • CBN's FX restrictions and Nigerian consumers
    CBN's FX restrictions and Nigerian consumers
  • Professionals need strategy to survive in job market – Funmi Bajulaiye
    Professionals need strategy to survive in job market…

Micro-insurance guidelines stipulate that a unit micro-insurer must have N15m as the capital base for life business, N25m for general business and N40m for composite business.

A state micro-insurer must have N40m for life business, N60m for general business and N100m for composite business, while a national micro-insurer must have N200m for life, N400m for general and N600m for composite.

According to Apere, all existing insurance companies have capital base far above this requirement, as a life company has N2bn as capital base, general has N3bn and composite has N5bn.

Apere said, “Now that the Tier-Based Minimum Solvency Capital policy is cancelled, it will be appropriate to revisit the tiered minimum capital base approach for micro-insurance by encouraging existing conventional insurance companies that will not be able to recapitalise under the new recapitalisation regime to register as national micro-insurers to serve the low-income segments, thereby supporting the evolution of more inclusive insurance systems.

“This would no doubt significantly increase the number of micro-insurance providers needed, which in turn would accelerate the insurance penetration at the grassroots in the country. Such un-recapitalised conventional companies would leverage more on their existing Information Technology infrastructure, quality staff and relatively lower expected strain on resources.”

According to him, the micro-insurance guidelines state that ‘Registered insurance companies shall be granted national micro-insurer licence upon application,’ which is in line with and/or similar to the concept proposed above.

He, however, stated that allowing the recapitalised conventional insurance companies to enter the micro-insurance market would have its implication in terms of unethical business practices and undue price competition (e.g. rate-cutting) at the detriment of other micro-insurers.

close
Subscribe to our newsletter and join thousands of readers of our financial, economic & investments news blog!
We don't spam with your email

Check your inbox or spam folder to confirm your subscription.

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn

Tags: InsuranceInsurance companymicro-insuranceNAICOMNational Association of Insurance and PensionNational Insurance Commission

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Olamiposi Oluwaseyi

Olamiposi Oluwaseyi

Related Posts

Nigeria spending too much, says minister
Economy

Nigeria spending too much, says minister

April 19, 2021
Investisseurs & Partenaires closes IPAE 2 fund at €75m
Economy

‘Emerging markets to generate $10tn by 2023’

April 19, 2021
CBN warns Nigerians against falling victim to cybercrime
Consumer Goods

CBN’s FX restrictions and Nigerian consumers

April 19, 2021
Auto Smart
AUTO SMART

Fumes and your vehicle’s health

April 18, 2021
Nexford: Stopgap in Nigeria's education deficit
Front Page

Nexford: Stopgap in Nigeria’s education deficit

April 18, 2021
Can CBN stop cryptocurrency trading?
Front Page

Nigeria may reintroduce crypto trading amid pressure

April 17, 2021
Next Post
Oil price hike: Nigeria won’t adjust projections for 2020 budget, says minister

Oil price hike: Nigeria won’t adjust projections for 2020 budget, says minister

RECENT STORIES

Investors gain N109.2bn as Nigerian stock market rebounds

Nigerian stocks’ turnover hits record high, up by 1,216%

April 19, 2021
Nigeria spending too much, says minister

Nigeria spending too much, says minister

April 19, 2021
IT Clearance Process saved Nigeria over N22bn – Pantami

IT Clearance Process saved Nigeria over N22bn – Pantami

April 19, 2021
Nigeria kicks off national training for fertiliser inspectors

Nigeria kicks off national training for fertiliser inspectors 

April 19, 2021
JPMorgan to sponsor breakaway Super League

JPMorgan to sponsor breakaway Super League

April 19, 2021
Funding, others key to quality healthcare – CMA

Funding, others key to quality healthcare – CMA

April 19, 2021
Investisseurs & Partenaires closes IPAE 2 fund at €75m

‘Emerging markets to generate $10tn by 2023’

April 19, 2021

TRENDING

  • CBN warns Nigerians against falling victim to cybercrime

    CBN’s FX restrictions and Nigerian consumers

    2 shares
    Share 0 Tweet 0
  • Blame govt for high cement price – Banjoko

    0 shares
    Share 0 Tweet 0
  • Professionals need strategy to survive in job market – Funmi Bajulaiye

    2 shares
    Share 0 Tweet 0
  • Elon Musk takes NASA astronauts to space

    0 shares
    Share 0 Tweet 0
  • As controversy dogs Africa’s longest oil pipeline

    0 shares
    Share 0 Tweet 0
Financial Street is a meeting point for technology, economy, and journalism.

© Financial Street 2020. All Rights Reserved.

More Links

  • Privacy Policy
  • Terms of Use
  • Contact Us

Follow Us

No Result
View All Result
  • Markets & Companies
    • Stock Market
    • Companies
    • Appointments
    • Commodities
  • Business & Economy
    • Energy
    • Agricultural Economy
    • Insurance & Pensions
    • Aviation
    • Maritime
    • Road Transport
    • Financial Inclusion
    • Investment
    • Manufacturing
    • Consumer Goods
  • INNOVATION
  • EMPIRE
  • OPINION
  • CULTURAL CURRENTS
  • Features
  • AE Magazine
  • CORPORATE RENDEZVOUS