National Insurance Commission (NAICOM) has describe as false the claim that five insurers fall below regulatory threshold”. A statement issued by the commission and signed by Razak Salami the Commission’s Deputy Director Corporate Communication said “While not holding brief for any company, NAICOM, being the apex Regulatory and Supervisory body of the insurance sector in Nigeria do hereby refutes this claim in its entirety.
The five companies as speculated are financially strong and solvent. With the benefit of hindsight, the report is not only false but misleading as the stated solvency ratios are at variance with the true position. For the avoidance of doubt, Section 24(2) of the Insurance Act 2003 stipulates that the solvency margin of an Insurer shall not be “less than 15 per cent of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid up capital whichever is greater”.
“Suffice it to say that the solvency test of the financials of insurance companies in Nigeria is based on the provision of extant laws. The Commission reiterates that members of the press should always explore all avenues to verify their facts before going to bed to avoid misleading the public”.
