Ebere Nwoji
The Commissioner for Insurance, Mr Olusegun Omosehin has said that the original plan of the National Insurance Commission ( NAICOM) at the on set of the recapitalisation exercise that saw the withdrawal of operating licenses of six insurance firms was that no insurance underwriting firm would go down on account of the exercise.
Omosehin who stated this while giving an update on the recently concluded recapitalisation and re licensing of insurance firms said his administration in NAICOM actually did its best to ensure that all insurance operators remain in business after recapitalisation but for the deviant attitude of the owners of the six firms that met their demise on account of the exercise.
Omosehin said, “Having clearly stated the guidelines for the exercise, I called companies that showed signs of inability to make it for a close door meeting where I pleaded with them to consider mergers, but they would not listen as the owners insisted they would make it.”
“I invited the chairmen; board and managements of some firms to ascertain their positions and even encouraged them to merge if they can’t make the recapitalisation,” he stated.
This, he said, is because the primary objective of recapitalisation is not to eliminate underwriters, but to fortify their balance sheets and enhance their capacity to absorb large and complex risks.
“I even prayed in church that no insurance company licence should be cancelled,” the NAICOM boss said, highlighting the commission’s supportive approach toward market sustainability.