Chairman, Heirs Insurance Group, Mr. Tony Elumelu has proposed N30 billion and N20 billion as capital base for general and non-group life insurance firms operating in Nigeria.
Elumelu stated this at the ongoing National Insurance Conference 2023, organised by National Insurance Commission (NAICOM) with the theme: “Redefining Safety: Insurance Solutions For Public Buildings and Building Under Construction”, held today at Abuja Continental Hotel, Abuja.
According to him, it is necessary to recapitalise the insurance industry firms as N8billion capital base for life and N10billion for general is inadequate.
“We should increase the capital base of insurance companies to N20 billion for Life and N30billion for non-life respectively.
Speaking further, Elumelu called on NAICOM to remove the dichotomy in insurance authorisations/licences between life and non-life.
He also recommend N1billion recapitalization for brokers, while noting that with “The devaluation of the currency, you are talking about USD8 million, USD10 million capital requirements for an insurance company in Africa’s largest economy.
He also called on NAICOM to focus on substance and things that will shape the sector and stop approving adverts.
He also recommended that the industry should mandatorily contribute 0.5% of total revenue to drive industry awareness for 5 years.