Business
NAICOM cancels controversial insurance industry recapitalisation policy
The much disputed Tier Based Solvency Capital Recapitalisation of the insurance Industry has been cancelled by the National Insurance Commission, NAICOM, with immediate effect.
NAICOM announced the cancellation in a circular to all insurance companies on ‘Withdrawal of circular on Tier Based Solvency Capital policy for insurance companies in Nigeria’, which was signed by the Director, NAICOM, Mr Agboola Pius, on Friday.
The circular states: “Pursuant to the powers conferred by the enabling laws, the commission hereby withdraws and cancels the circular dated August 27, 2018 and titled Tier Based Solvency Capital Policy for insurance companies in Nigeria. This withdrawal and cancellation takes immediate effect.”
Read also: Foreign Direct Investment in ICT increased by $8bn in 3 years- Shittu
NAICOM, had few months ago, announced a raise in the minimum capital base for life, non-life and composite insurance companies seeking to get licences to underwrite all risks in the country from N2bn, N3bn and N5bn to N6bn, N9bn and N15bn, respectively under its tier-based minimum solvency capital structure.
The commission also later announced an October 1, 2018 deadline, which was not accepted by stakeholders, pushing them to take a legal action against the commission at a Federal High Court in Lagos.
Justice Muslim Hassan, who handled the case, gave an order restraining the commission from implementing or enforcing the TBMSC policy, making NAICOM to suspend its implementation in October.
In compliance with the extant rules and injunction issued by the Federal High Court, the commission had said status quo would be maintained and insurers were asked to continue to operate on the subsisting regulatory framework prior to the circular, adding that appropriate regulatory directive would be given upon the completion of the suit.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...