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Thirty-two years after the last reinsurance company was issued operating license, National Insurance Commission (NAICOM) has admitted another reinsurance company into the industry.
Commissioner for Insurance, Mr. Sunday Olorundare Thomas who spoke in Lagos during a workshop for journalists said the new reinsurance company came after a 32-year embargo.
In addition, four new insurance companies were also issued licenses, 10 years after the last one came into the business.
Of the four insurance companies, three are life underwriters and the other one in the general business.
According to Thomas, the commission has undergone some transformation since he became the chief executive officer,
“Within the period we have been able to issue licenses to 5 conventional operators, 4 insurance companies and 1 reinsurance company.”
“The last insurance company that was admitted into the industry was about 10 years ago and the last reinsurance company was about 32 years ago but by the grace of God, knowing where we are going, there is a need to bring in new operators and it was selective. Out of the 4 insurance companies, 3 of them are life operators.”
He said he realises that the South African insurance market is largely driving by life companies, so, he took a cue from them.
“Today you will see that one area that is driving the flow of insurance and essentially why the South African market dominates the Nigerian market is because of its life operations, that is how it has been. If you look at the structure of the portfolio of the South African market, it is dominated by life business.”
He added that NAICOM has also licensed four micro-insurance companies while processing the documents of two additional ones.
Speaking on his one-year experience in the saddle, Thomas noted that the Commission has been able to achieve stability in the insurance industry with evidence of the enhanced role the sector continues to play in the nation’s economy.
He also unveiled a 5-Point Strategic Plan (2021-2020) that will drive the insurance business and deepen its penetration in Nigeria.
He disclosed that N9.2bn was set aside as group life premium for 2021-2022 insurance cover for federal civil servants and paramilitary just as the level of insurance participation in pension matters received a boost.
On September 1, 2020, NAICOM and National Pension Commission (PenCom) jointly issued guidelines on Retiree Life Annuity and Employee Group Life Insurance Policy.
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