Recapitalisation: NAICOM Wanted All Insurers to Sail Through
Ebere Nwoji The Commissioner for Insurance, Mr Olusegun Omosehin has said that the original plan of the National Insurance Commission ( NAICOM) at the on set of the recapitalisation exercise
The National Insurance Commission (NAICOM) Commissioner for Insurance, Mr Olusegun Omosehin, has revealed that the initial objective of the recapitalisation exercise was to ensure that no insurance underwriting firm failed due to the process. In an update on the recently concluded recapitalisation and re-licensing of insurance firms, Omosehin expressed that his administration in NAICOM made every effort to prevent any insurance operators from going out of business post recapitalisation.
However, the owners of six firms were found to have taken a deviant attitude, resulting in their demise.
Having outlined the guidelines for the exercise, Omosehin personally met with companies showing signs of inability to continue for a closed-door session where he pleaded with them to consider mergers. Unfortunately, the owners of the firms refused to listen, insisting that they would make it. The NAICOM boss stated that he invited chairmen, board, and management of some firms to evaluate their positions and even encouraged them to merge if they could not meet the recapitalisation requirements.
Omosehin emphasized that the primary objective of recapitalisation is not to eliminate underwriters but to strengthen their balance sheets and increase their capacity to absorb large and complex risks. He also mentioned that in church, he prayed that no insurance company licence should be cancelled. The NAICOM boss highlighted the commission's supportive approach toward market sustainability throughout the recapitalisation process.
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