Saturday, July 12, 2025
27.5 C
Lagos

NAICOM Unveils New Capital Base for Insurers From Jan 1, 2019

The National Insurance Commission (NAICOM) yesterday unveiled a new capital model for the insurance industry in Nigeria effective from January 1, 2019. The new risk-based capital structure is divided into three tiers depending on the risk appetite and capital capacity of each operator.

Under the new capitalisation structure, life insurance firms need a capital level of N6 billion for Tier 1; N3 billion for Tier 2 and N2 billion for Tier 3: For general business, the requirement is N9 billion for Tier 1; N4.5 billion for Tier 2 and N3 billion for Tier 3.

And for composite companies (combination of life and general business), the new capital requirement is N15 billion for Tier 1; N7.5 billion for Tier 2 and N5 billion for Tier 3.

Mr. Sunday Thomas, the Deputy Commissioner for Insurance, Technical at NAICOM, said the insurance industry cannot continue to operate at present level of capitalisation if it is to contribute meaningfully to economic growth in the country.

Thomas said: “The operating capital has to be tinkered with to optimise the potential of the industry. The adoption of the risk-based capital is here. What we have is a home-grown model. We shall release the transition guidelines on August 3, 2018 to provide more details on the capitalisation initiative.”

Mr. Barineka Thompson, a Director at NAICOM, who made the presentation on behalf of the Commission, said the new capital structure does not extend to reinsurance companies operating in the country for now. He added that the Commission is working on a new policy for reinsurance firms.

The NAICOM director said the insurers Committee meeting of February 15-16, 2018 in Abeokuta, Ogun State unanimously agreed to recapitalise the insurance sector in Nigeria.

It would be recalled that a recapitalisation exercise was last carried out in the insurance industry in 2007.

spot_img
spot_img
spot_img

Hot this week

Fidelity Bank Delivers Hope to Internally Displaced Persons in Benue State

Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka (Left);...

Union Bank Responds to Court Ruling on NICON, Global Fleet, Jimoh Ibrahim Case

Union Bank of Nigeria acknowledges the recent judgment of...

NAICOM, CIIN Laud IMT for Advancing Tech-Driven Insurance in Nigeria

The Commissioner for Insurance (CFI) and the CEO of...

NCDMB Unveils Nigerian Content Fund Certificate, Empowers 130 firms with $400m NCI Fund

The Nigerian Content Development and Monitoring Board has introduced...

Local Content, NCDMB on the Spotlight at 2025 NOG Conference

The recently held 2025 Nigeria Oil and Gas (NOG)...

Topics

US electronic cigarettes on all commercial flights

U.S. Department of Transportation announced a final rule that...

World Bank Selects Davis Malpass as 13th President

The World Bank has announced the unanimous selection of...

The 5 Outcomes of the Work Culture Shift

By Elvis Eromosele Anxiety about the future of work had...

Stanbic IBTC Unveils Flex Border to Ease Cross-Border Transactions

Stanbic IBTC Bank Plc, a subsidiary of Stanbic IBTC...

Stanbic IBTC Donates Vocational Centre for Young Inmates

Stanbic IBTC Holdings PLC, a member of Standard Bank...

NCC Director, Yakubu Gontor Honoured by Northern Youth Organisation

From right: Yakubu Gontor, Director, Financial Services, Nigerian Communications Commission...

‘NCC Committed to Digital Nigeria’ – Danbatta

Professor Umar Danbatta, Executive Vice-Chairman/CEO, Nigerian Communications Commission (NCC)...

Rosatom, YLB Partner on Lithium Mining and Production in Bolivia

Uranium One Group JSC (an entity of the ROSATOM...
spot_img

Related Articles

Popular Categories

spot_imgspot_img