The Chairman of Nigerian Insurers Association, Mr Tope Smart, has asked the Nigerian Stock Exchange to assist the insurance companies in its bid to meet the new capital base prescribed by the National Insurance Commission.
The commission had increased the capital requirements for insurance and reinsurance companies from N2bn to N8bn for life insurance companies, N3bn to N10bn for general business underwriters, N18bn for composite insurers and N20bn for reinsurance companies with a one- year timeline for compliance.
Addressing the Director-General of the NSE, Mr Oscar Onyema, and the management during a courtesy visit to the exchange,on Tuesday, Smart solicited the support of the exchange and other players in the capital market as well as palliatives for insurance companies in their capital raising efforts.
Giving a breakdown of the insurance companies in Nigeria, the NIA chairman noted that out of 59 insurance companies, comprising 14 specialist life insurance companies, 28 general insurance companies, 13 composite insurance companies, two takaful insurance companies and two reinsurance companies, 32 insurance companies were listed on the exchange.
He declared the association’s support for the exchange and welcomed the initiatives aimed at strengthening the cordial relationship existing between the association and the exchange.
Onyema commended the association for increasing its advocacy efforts and expressed joy at the increasing participation of the insurance companies on the floor of the exchange.
He described the insurance sector as an important sector of the economy that was too critical to be ignored, while promising to assist them in their bid to meet the new capital requirement.
Onyema stated that the exchange would soon introduce some derivatives to take care of takaful insurance products.
He urged the insurance companies to make use of NSE’s knowledge sharing platform in its capacity building and corporate governance training.
Director-General, NIA, Mrs Yetunde Ilori, while thanking the NSE boss and his team for the opportunity to visit and exchange ideas on how to collaborate for the benefit of insurance companies, appreciated them for their support in releasing longer- tenured fixed income instruments which insurance companies could leverage for greater value for their long- term products.