The National Insurance Commission (NAICOM), Nigeria’s regulatory authority for the insurance sector, has announced that in line with the recently introduced Tier-Based Minimum Solvency Capital (TBMSC) policy, new licences are now available for tier 1 level in both the life and non-life business categories.
The TBMSC, which is expected to kick off October 1, 2018, requires a life and non-life insurance company to have a minimum capital base of N6 billion and N9 billion respectively as against N2 billion and N3 billion erstwhile required.
Hence new investors who meet the regulatory requirements can now receive licenses.
For existing insurance firms currently playing in aforementioned categories the commission specifically said, “Only companies that meet the respective tier requirements shall lead on new businesses in those categories with effect from October 1, 2018, adding that companies shall be assessed, in the first instance, on their approved financial statement for 2017, and/or, audited half year account for 2018.
NAICOM however stated that where a company is yet to obtain approval for its 2017 financial statement, its last approved audited accounts will be used for the assessment.”
To obtain new licensing, a statement made available to business a.m by the corporate communication department of the commission urged interested investors to approach the commission for application procedures.
“Interested investors are by this pronouncement advised to access the commission’s website at: www.naicom.gov.ng/registration for full details of the application procedures,” it stated.
