With six months left for the insurance sector 2020 recapitalisation deadline, the Securities and Exchange Commission (SEC) has advised operators to take advantage of long-term investment opportunities in the capital market.
The call was part of the highlights of a meeting recently held in Lagos by members of the reconstituted Insurers’ Committee.
In a chat with journalists after the meeting, the Chairman, Media and Publicity Sub-committee of the Insurers Committee, Mrs Ebele Nwachukwu, disclosed that not less than 10 companies had approached the capital market to seek assistance towards raising funds to beat the recapitalisation hurdle.
Nwachukwu also said that SEC had equally promised to render the necessary assistance within its regulatory powers to support companies, stressing that insurers should take advantage of the capital market long term investment fund to boost their finances.
She noted that the recapitalisation exercise was intended to strengthen the financial position of the industry.
She quoted the Acting Commissioner for Insurance, Mr Sunday Thomas, as saying that the National Insurance Commission (NAICOM) had always partnered with SEC and other relevant agencies to seek palliative for the insurance industry.
Nwachukwu, who is also the Managing Director, NSIA Insurance, also revealed that the insurers’ committee prepared the minds of the operators toward the adoption of International Financial Reporting Standards 17 (IFRS 14), saying funds should be budgeted for training to make the adoption easier.
The committee also disclosed that the insurance industry rebranding had been put on hold due to poor financial response on the part of some members.
“The rebranding project has been stopped. We did because of issues regarding poor participation by operators. We have to come back to it. We are back on the drawing board,” the committee stated.