The Managing Director/Chief Executive Officer of Leadway Assurance Company Limited, Mr. Oye Hassan-Odukale, has lauded the National Insurance Commission (NAICOM), over the recently announced Tier-Based Minimum Solvency Requirement (TBMSR) recapitalisation policy.
Mr. Hassan-Odukale, who is also the chairman of the Sub-Committee on Publicity and Communication of the industry’s insurers’ committee, believes the introduction of the solvency requirement for insurers in Nigeria commencing January 1, 2019, will help to restructure the market in a way that insurers can choose which part of the consumer segment (retail, commercial or industrial) is best served based on the capital fund that it holds or is able to deploy.
He also expressed confidence in the initiative, adding that “the news of NAICOM’s introduction of TBMSR is a positive one. I am confident that it is an initiative with potential upside for the industry to grow and take its rightful position as a formidable contributor to our national economic activities, growth and development as it is in developed economies.”
Under the new Tier-Based Minimum Solvency Requirement (TBMSR), the Tier 1 companies are ultimately required to have 300 percent of the base capital (N9bn for general insurance and N6bn for life) to write all risks.
