The President, Insurance Industry Consultative Council, Mr Eddie Efekoha, has assured that operators in the insurance industry will support the National Insurance Commission to grow the industry.
Efekoha said this at the 2019 IICC retreat in Ijebu Ode, while applauding NAICOM for setting the pace of recapitalisation in the financial sector.
Efekoha said, “The wind of recapitalisation is blowing. When we came back from South Africa, we heard that of Ghana Insurers and the Central Bank of Nigeria planned recapitalisation, and I think the insurance regulator should be recommended for setting the pace.
“I can assure you that the operators will not go against our regulator because the consequences of that is too grievous. However, there is a limit at which operators can control other stakeholders like the shareholders and investors. We cannot stop them from speaking their minds, but whatever they have said do not represent the operators’/managers’ decision.”
Efekoha, while giving reason for the recapitalisation exercise, said, “The reasons NAICOM gave for the recapitalisation exercise are the same reasons CBN is giving which are the issues of exchange rate and capacity.
“If these are the main reasons for the recapitalisation exercise, the truth of the matter is that the exchange rate that applied in 2005/2007 is not the same in 2018/19.
“Secondly, if the exchange rate has changed, our ability to retain businesses has weaken. Should we enhance it? Yes! I think we should enhance it.”
The President, Institute of Loss Adjusters of Nigeria, Alhaji Femi Hassan, said, “We, at ILAN, want this recapitalisation to take place. We are eagerly waiting for it to take place, because it will enable the operators to put some structures in place that will help to grow the industry.