SEC advises NAICOM on industry’s recapitalisation plan

The Securities and Exchange Commission (SEC) has advised insurers to take advantage of long term investments in the capital market as they embark on recapitalisation.

The capital market regulator, as part of palliatives offered in solidarity to the National Insurance Commission (NAICOM), vowed to support insurers seeking funds at the market to boost their operations.

These were parts of the highlights enumerated at a meeting held in Lagos over the weekend by members of the reconstituted Insurers’ Committee.

Speaking with journalists after the meeting, a member of the committee, Mrs. Ebere Nwachukwu, revealed that about 10 companies had already approached the capital market to seek assistance in raising funds for the recapitalisation exercise.

She assured that the commission had equally promised to render the necessary assistance within its regulatory power to support the companies, stressing that insurers should take advantage of the capital market long term investment fund to boost their finances.

Nwachukwu noted that the recapitalisation exercise was intended to strengthen the financial position of the insurance industry.

Quoting the Acting Commissioner for Insurance, Sunday Thomas, she said that NAICOM had always partnered with SEC and other relevant agencies to seek palliatives for the insurance industry’s growth.

Nwachukwu, who is also the Managing Director, NSIA Insurance, revealed that the committee had prepared the minds of the operators toward the adoption of International Financial Reporting Standards 17 (IFRS 14), advising that funds should be budgeted for training to make the adoption easier.

The committee also disclosed that the insurance industry rebranding had been put on hold due to poor financial response on the part of some members.

“The rebranding project has been stopped. We did because of issues regarding poor participation by operators. We have to come back to it. We are back on the drawing board,” the committee noted.