Ebere Nwoji
The National Insurance Commission (NAICOM) and the National Pension Commission (PenCom), have urged insurance companies and pension Fund operators to ensure that recapitalisation translates into stronger institutions, better services and improved financial security for Nigerians.
Both sectors are undergoing recapitalisation process with the insurance sector having concluded its own process and pension sector’s slated to end July 2027.
The regulators made the call recently at the 11th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE).
Speaking at the conference, the commissioner for insurance, Mr Olusegun Omosehin, said insurers must look beyond meeting minimum capital requirements to strengthening their balance sheets, improving risk management and enhancing claims settlement.
He said the successful completion of the recapitalisation exercise in insurance sector marked the beginning of a new phase, requiring operators to preserve and deploy their capital prudently.
Omosehin said insurers must align their assets with their liabilities to ensure that adequate, liquid and diversified investments were available to meet obligations to policyholders.
He also urged operators to adopt disciplined investment policies, strengthen corporate governance and improve risk management to protect their enhanced capital bases.
Similarly, Director-General of PenCom, Ms Omolola Oloworaran, urged pension Fund operators yet to meet the recapitalisation requirements to comply with the directive urgently.
“I’d like to make a warning to the industry. All those who have not met the recapitalisation in the pension industry, there’s no going back. Go and meet your capital requirements with urgency,” she said.
Oloworaran said recapitalisation was necessary to strengthen regulated institutions and improve their capacity to withstand economic and financial shocks.
She said the reforms were particularly important because pension and insurance institutions managed resources critical to the livelihoods and financial security of Nigerians.
She said regulators and industry stakeholders must continually assess whether reforms were delivering tangible benefits to Nigerians.
“Beyond recapitalisation, yes, industries are bigger, more resilient and all of that. But at the end of the day, the person, the human we exist to serve, is not feeling the impact. Then what is the importance of all the reforms we put out,” she said.