COVID-19 Lockdown: NAICOM Rolls Out Insurance Operation Sustenance Palliative Measures

The National Insurance Commission (NAICOM) has dished out regulatory palliative measures meant to sustain insurance operations and shield insurance policy holders from the negative consequences of lockdown period as the nation battles to control COVID-19 spread.

NAICOM said it constitutes part of business continuity measures by it to, “as much as possible, ensure availability of insurance services and protections of insurance policy holders during the COVID-19 Movement Restriction”.

Contained in a circular to all insurance companies and institutions and endorsed by Pius T. Agboola, Director, Policy and Regulation, on behalf of the Acting Commissioner for Insurance, NAICOM urged all to “be diligent, circumspect and supportive of Government in its efforts to tame the COVID-19 Pandemic.”

According to NAICOM in the circular referenced NAICOM/DPR/CIR/29/2020 and dated 01 April 2020, “Where Approval-In-Principle for the preceding insurance period had been granted,all renewals or extensions of the foreign reinsurance proportions that become due during COVID-19 movement restriction are permitted for renewal on existing basis.

“Where Approval-In-Principle for the foreign proportion of a new insurance placement is required during the COVID-19 movement restriction, it shall be treated on the basis of “Use and File” subject to prior exhaustion of in-country capacity.For the avoidance of doubt, after utilizing available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentations to the Commission thereafter.

“All Post Placement Reports, Reinsurance Treaties and other related special risk foreign reinsurance documentations due for submission during the pendency of the COVID-19 restrictions are to be submitted when movement restrictions are lifted.”

NAICOM further stressed that “all insurance/reinsurance placements shall be done in accordance with other relevant extant insurance laws, regulations and guidelines while all submissions to the Commission including hard-copies sequel to the above forbearance shall be done not later seven (7) days from the end of COVID-19 Movement Restrictions.”