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SEC Pledges Support for Insurers on Recapitalisation

The Securities and Exchange Commission [SEC] has pledged to support insurance operators seeking funds from the capital to meet the new recapitalisation set for the industry by the National Insurance Commission (NIACOM. SEC advised insurers to take advantage of long-term funds in the capital market.

The call was part of the highlights enumerated at a meeting held in Lagos by members of the reconstituted Insurers’ Committee.

Briefing journalists after a meeting of the Insurers Committee in Lagos, a member of the committee, Mrs. Ebele Nwachukwu, revealed that not less than 10 companies had approached the capital market to seek assistance towards raising funds for the recapitalisation exercise.

She assured that the commission had equally promised to render the necessary assistance within its regulatory power to support the companies, stressing that insurers should take advantage of the capital market long term investment fund to boost their finances.

She said the recapitalisation exercise was intended to strengthen the financial position of the industry.

Nwachukwu also quoted the Acting Commissioner for Insurance, Mr. Sunday Thomas, as saying that the National Insurance Commission [NAICOM] had always partnered with SEC and other relevant agencies to seek palliatives for the insurance industry.

Mr. Tope Smart Chairman Nigerian Insurers Association
Mr. Tope Smart
Nigerian Insurers Association

Nwachukwu, who is also the Managing Director, NSIA Insurance, also revealed that the committee prepared the minds of the operators toward the adoption of International Financial Reporting Standards 17 [IFRS], saying funds should be budgeted for training to make the adoption easier.

The committee also disclosed that the insurance industry rebranding had been put on hold due to poor financial response on the part of some members.

The rebranding project has been stopped. We did because of issues regarding poor participation by operators. We have to come back to it. We are back on the drawing board,” the committee noted.

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