Ebere Nwoji
The Securities and Exalter Commission (SEC) has set up a support -desk to facilitate all processes relating to insurance operators’ bid raise the required funds through the capital market.
At the recent 19th insurers’ committee meeting, SEC Director General, Dr Emomotimi Agama stated the commission will quick track all documentations and approvals for insurance companies wishing to raise capital applying the instrumentalities of the capital market.
Agama, who gave the commitment at the interactive session with chief executive officers of insurance and reinsurance companies stated the dedicated desk would ensure that all approvals and documentations were completed within 14 days thus giving the project a head start.
Agama urged insurance companies not to see the project as a fund raising exercise but rather a charge to the reforming and repositioning of the nation’s insurance industest for the huge ticket businesses.
According to him, the new capital requirements which prescribed N15 billion for non life insurance companies, N10 billion for life insurance firms and N35 billion for reinsurance companies should be considered as the much requireded tonic for the repositioning of the market contrary to views in certain quarters that the shift was meant to decimating the number of players in the industest. Insurance companies are expected to raise the funds within one year of the signing into law of the Nigerian Insurance Industest Reform Act (NIIRA).
Chairman of the Communication and Stakeholders Engagement Sub-Committee, Mrs. Ebelechukwu Nwachukwu, giving details of the outcome of the meeting at a press briefing at the Insurers Hoapply Lagos which is the secretariat of the Nigerian Insurers Association (NIA) disclosed that SEC has also granted about nine concessions to facilitate the recapitalisation process.
While speaking on the draft of the new minimum capital requirement guidelines to the industest for review circulated by the National Insurance Commission (NAICOM), she stated comments from stakeholders have already been submitted, and the final guidelines were expected to be released soon.
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