Insurance, IICCBy Cynthia Alo

The Securities and Exchange Commission (SEC) has advised  operators in the insurance sector to take advantage of long term investment opportunities in the capital market in their quest to meet the June 2020 deadline  for recapitalization.

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The call was part of the highlights of a meeting between the Commission and members of the reconstituted Insurers’ Committee held in Lagos.

A member of the Committee who is also the Managing Director, NSIA Insurance, Mrs. Ebele Nwachukwu ,disclosed this while at a press briefing after the meeting.

Disclosing that not less than 10 companies had approached the capital market to seek assistance towards raising funds for the recapitalisation exercise, she said : ‘’SEC told us the transparency and due diligence required to  enable the industry take advantage of the stock market for  long term investment in view of  the recapitalization exercise.”

“The stock market gives us  access to long term funding investment through public offers, rights issues, equities and other offers. SEC  also told us  that the capital market is a market for long term funds as most of the other investors are usually on a  short term but the capital market will provide the industry with long term funds,’’ she added.

She said that the Commission  also assured  to render the necessary assistance within its regulatory power to support the companies, stressing that insurers should take advantage of the capital market long term investment fund to boost their finances.

She said the recapitalisation exercise was intended to strengthen the financial position of the industry adding, ‘’SEC  assured us that the recapitalization will encourage consolidation, reduce the risk of insolvency and protect policy holders.’’

Nwachukwu also 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.

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She   also revealed that the 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.

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