The constantly stated last option by National Insurance Commission, to put the insurance market back on track by creating new levels of operating capital for insurance and reinsurance companies, has been questioned by the House of Representatives through motion to suspend the recapitalisation process.
Yesterday, the House adopted a motion, which cannot be enforced but a show of discontent, to suspend the process after listening to Rep Benjamin Kalu, under the motions of urgent public importance to suspend the ongoing process of recapitalisation of general, life and reinsurance companies. It was seconded by Rep Olododo Cook. The deputy speaker Ahmed idris Wase, presided.
In his demand for suspension, Kalu said it was because of economic situation facing the country as a result of Covid-19 pandemic, stressing that the process was not “hypercritical and could be done at a more appropriate time.”
Kanu’s surprise argument was that the investors funds should should be channelled to aid such companies and not to further burden them taken into cognisance the #EndSARS protests and the current recession.
He asked the government to be more sensitive through NAICOM to the challenges of the insurance industry. The motion was voted, adopted and referred to the House Committee on Insurance and Actuarial Matters.
Incidentally, this month December, marks the end of the first lap of the recapitalisation process. Insurance and reinsurance companies are expected to score no less than 50% fully paid up capital and mergers and acquisitions process fully reported to the Commission.
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