Now, it will require a minimum capital of 6 billion naira ($ 16.6 million) against 2 billion naira ($ 5.5 million), to practice in the insurance sector in Nigeria.
For good reason, the National Insurance Commission (NAICOM) has increased the capital base for companies, with effect from 1 January 2019, with the aim of increasing their capacity to manage the risk of the largest oil producer in Africa.
According to the regulator of the insurance sector, the new capitalization system called “Recapitalization of insurance companies, the minimum solvency capital based on the level”, will be based on a risk-based supervision model.
“Life insurers wishing to take annuities and life annuities must raise their capital to $ 16.6 million against $ 5.5 million, while non-life operators underwriting all risks including aviation and engineering will to raise their capital to $ 24.86 million against $ 8.3 million, “said Rasaaq Salami, spokesman for the regulator based in Abuja, Wednesday, July 25.
For their part, companies that want to do business both life and non-life, including oil and gas transactions, will need to increase their capital to $ 41.43 million from $ 13.8 million currently.
As a reminder, NAICOM said last year that it would ensure that companies do not engage in more business than they can manage, so that the industry reduces its exposure to risk and increases its liquidity. and its profitability.
