Ebere Nwoji 

Insurance sector operators have continued to express their divergent views on the recapitalisation effort which the industry regulator the National Insurance Commission(NAICOM) announced  penultimate week.

While some see the capital increase as the ultimate solution to the industry’s problem, others said proper management of the huge capital by the operators was  the key to solving various problems of the industry.

The Executive Secretary the Nigerian Council of Registered Insurance Brokers (NCRIB), Mr Tope Adaramola in an exclusive interview with THISDAY said  the industry operators including NCRIB were very delighted that the key pillar of the Nigeria Insurance Industry Act2025 (NIIRA) has been endorsed and implemented adding that it would  ensure financial soundness of the operators.

“Industry operators of which we brokers are critical factors are very delighted that the key pillars of that law part of which is stringent capital requirement which will ensure financial soundness of operations has been endorsed.

“The increase in capital base will assist members, it  will also boil up the capability of insurance companies to be able to under take risks which are hitherto taken abroad. The enhanced capacity will help to broaden the solvency and the industry and ensure financial soundness of operating firms,” he said.

He further said the enforcement of compulsory insurances would  enhance consumer protection and extend the coverage net of insurance beyond what it is now.

“Imagine all the six compulsory insurances being enforced, it  will also facilitate claims payment,” he said.

But commenting on the capital increase,the  Executive Director (Technical), Continental Reinsurance Plc, Chukwuemeka Akwiwu, urged  insurance companies to embrace strong governance practices as a core strategy for managing the fresh capital they were required to raise under the NIIRA Act 2025.

Akwiwu, who spoke  at the annual retreat of the Risk, Audit, and Compliance Committee (RACC), a technical committee under the Nigerian Insurers Association (NIA), held in Abeokuta, Ogun State recently

emphasised that while new capital provides much-needed strength to insurers’ balance sheets, good corporate governance would  ensure that capital was deployed wisely, risk underwritten responsibly, and companies positioned for sustainable growth.

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