Mr Sunday Thomas, NAICOM Deputy Commissioner (Technical) (second from Right) and Mr. Pius Agboola (Director, Policy and Regulations)  (Third from left)  in a group photograph at the NAICOM organised Seminar for Insurance Correspondents, Ijebuode, Ogun state.

The National Insurance Commission (NAICOM) has vowed to prosecute as never before the recapitalization process of insurance companies to ensure that the sector is positioned to support economic development of the country.

It said that even though operators may not have the wherewithal for the recapitalization of their respective companies, but the onus lies on the regulator to set the standards that will strengthen the insurance companies’ capacities and place them in a position to undertake insurance businesses.

The NAICOM Deputy Commissioner (Technical), Sunday Thomas who stood in for Commissioner for Insurance, said these while making remarks at Seminar for Insurance Correspondents in Ijebuode, Ogunyemi state. The seminar which has its key theme “Recapitalization Road Map: Implementation, Expectations and Benefits” was organised by NAICOM.

Giving more insight into the need for the recapitalization, Mr. Thomas explained that the process was meant to enable the sector retain insurance businesses instead of allowing it to go outside the country; turn the image of the insurance market, strengthen financial base of the companies, increase the sector’s contributions to gross domestic product of the country, among other benefits.

According to the Deputy Commissioner, “We want to prosecute this recapitalization as one that has never been done before; we want this to ensure that we retain our businesses, turn the image of our market.”

Further, Mr. Thomas said, “We have the mandate to ensure that the recapitalization throws up more solid companies. Our hands are open to welcome investors in new companies or existing companies”

He emphasised that NAICOM targets at having companies and insurance sector that would support the government to build a viable economy.

In his presentation of the theme paper, Recapitalization Road Map: Implementation, Expectations and Benefits”, the NAICOM Director (Policy and Regulations), Mr. Pius Agboola, recalled previous attempts of recapitalizing insurance companies include that of 2005/2007 as well as the attempt done to introduce the Tier Based Recapitalization process in 2012/2014.

He enumerated the benefits of the recapitalization including the need for capital restructuring, improvement in the liquidity position of the insurance underwriters; that insurance industry life cycle is still at early growth stage which needed to be explored; and need for emergence of holding companies, conglomerates and consolidation of businesses.