National Insurance Commission (NAICOM) said on Monday that no insurance company in the country could be categorised as having met the recapitalisation requirements for now.
The commission said this was despite claims of some of the operators that they had met the requirements.
Director, Policy and Regulation of the Commission Mr Pius Agboola, made the disclosure at the 2020 Seminar organised by NAICOM for Journalists covering the insurance sector held in Kano.
Agboola said while some of the insurance firms might have investments beyond the requirements of NAICOM, it did not mean that such companies had scaled through because it required processes.
“Some companies’ paid-up capital is N5 billion and they may have up to N20 billion in their reserve, but that does not mean that they have met the requirements.
“Even with what they have, they will have to call board meeting, pass board resolution, among other processes, even with NAICOM, ” he said.
According to him, the commission has decided to issue guidelines for the exercise in stages and will soon issue guideline on Capital verification.
He said even if any company claimed to be ready, it must still await NAICOM to issue its guideline on capital verification in line with the recapitalisation plans submitted.
Agboola said there was a high possibility that the commission might not disclose the status of the insurance firms as regards recapitalisation until towards the end of the exercise.
NAICOM had in a circular last month, announced the extension of the deadline.
Agboola said the decision for the extension followed a review of the recapitalisation plans submitted by the operators and various levels of the compliance observed and also input from various engagements with relevant stakeholders.
NAICOM, in exercise of its statutory powers and regulatory functions, had on May 20 reviewed the minimum paid-up share capital requirement for all classes of insurers comprising Insurance and Reinsurance companies.
The directive was with the exception of Takaful operators and Micro-insurance companies doing business in Nigeria.
Following the reviewed minimum capital requirement, the existing minimum paid – up capital share of Life Insurance business was reviewed and raised from N2 billion to N8 billion.
General Insurance business was raised from N3 billion to N10 billion , Composite business was raised from N5 billion to N18 billion and Reinsurance business was raised from N10 billion to 20 billion .
The new paid-up share capital requirement took immediate effect for new applications made to NAICOM by companies seeking to carry on insurance business in Nigeria.