The House of Representatives has directed the National Insurance Commission (NAICOM) to suspend the planned December 31, 2020 mandatory deadline for insurance companies and intermediaries to pay off the new paid up capital threshold.
This was sequel to a motion moved by the House Spokesperson, Benjamin Okezie Kalu and others.
The lawmakers said there is the need for the first phase of 50%, noting that 60% of the minimum paid up share capital for insurance and reinsurance companies to be put on hold for a minimum of six months from January 2021.
They added that the period will help the companies for more time to cushion the effects of COVID-19 and other unforeseen circumstances on the insurance industry.
The lawmakers noted that NAICOM had on May 20, 2019 increased the minimum paid up share capital for insurance and reinsurance companies.
“The changes to the minimum paid up share capital were as follows Life Insurance N2 billion to N8bn, General N3bn to N10bn, Composite N5bn to N18bn and Reinsurance N10bn to N20bn.
NAICOM introduced a two phased recapitalisation programmes, wherein, 50 percent of the minimum paid up share capital for insurance companies must be met by December 31, 2020 and 60 percent for reinsurance companies must be met on the same date,” they added.
