Capitalisation: FG Challenges Insurers on Stronger Institutions, Balance Sheet

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has urged insurance operators to prioritize not just building stronger balance sheets, but also establishing robust institutions and cultivating public trust, according to Ebere Nwoji. This challenge was delivered to the insurance sector during the 8th Annual Insurance Directors’ Conference, held in Lagos, by Oyedele, who was accompanied by Dr. Greg Ezeilo, a finance expert from the Federal Ministry of Finance.

Oyedele emphasized that the transition to the new capital regime should not be viewed as just a regulatory obligation, but rather as a strategic opportunity for transformation. He stressed that the ultimate measure of success would be how effectively the industry utilizes the capital to safeguard policyholders, mitigate shocks, foster confidence, and fuel economic progress. Oyedele expressed confidence that this goal could be attained within the insurance industry.

Commissioner for Insurance, Olusegun Ayo Omosehin, also addressed the insurance directors, urging them to focus not only on their company’s existing capital but also to scrutinize the quality of the capital, how it is deployed, the risks it covers, and the returns it generates. Omosehin cautioned that just because companies managed to pass the recapitalization hurdle, it does not guarantee they will be resilient moving forward.