The National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) on Thursday urged the National Insurance Commission (NAICOM) to review its recapitalisation policy directives to boost the industry.
Mr Danjuma Musa, the out-going President of NUBIFIE, spoke at a news conference in Lagos while handing over to the in-coming President, Mr Anthony Abakpa.
NAICOM had announced an increase in the minimum capital base for composite insurance (life and non-underwriters) that wanted licence to underwrite all risks in the country from N5 billion to N15 billion.
NAICOM is also raising the minimum capital requirement of life insurance companies that want to underwrite all forms of life insurance from N2 billion to N6 billion.
The minimum capital base for non-life insurance companies is also being raised from N3 billion to N9 billion.
According to Musa, the recapitalisation policy is discriminatory, restrictive of choice and capable of driving aground many insurance companies.
“This is not good for under insured economy like Nigeria. Many Nigerians prefer to buy third party insurance than others.
“We call on NAICOM to review it and address our concerns and apprehensions.
“NAICOM should also extend the time of compliance because some groups are planning to buy over companies that are not able to capitalise before the October deadline,’’ he said.
The out-going president said it was regrettable that the prolonged crisis in the union had hampered its ability to pursue the cause of the union and the industry.
Musa said that with the resolution of the crisis and with new executive members in place to run the union, the interest and welfare of the members would be taken care of.
He urged the members to support and criticise the new executive objectively and provide them enabling environment to perform their duty.
Mr Muhammed Sheikh, NUBIFIE’s General Secretary, also faulted the policy, saying it restricted free participation in the insurance policy.
Sheikh said that the capitalisation policy, if not looked into, would make the public to discriminate against some companies and undermine the goal of making insurance to the people.
