The National Insurance Commission (NAICOM), having earlier suspended the implementation of the Tier Based recapitalisation exercise of insurance industry in compliance with the injunction issued by the Federal High Court restraining the commission from going ahead with its Tier Based Minimum Solvency Capital (TBMSC) framework, has now cancel the exercise.
This, LEADERSHIP Weekend learnt, has however, nullified the case in court, as it seems the shareholders, who had earlier taken the regulatory body to court, has no basis to continue the court case.
In a circular issued by the commission and signed by its Director, Policy and Regulation, Mr. Agboola Pius, on behalf of the Commissioner for Insurance, Alhaji Mohammed Kari, on Friday said: “Pursuant to the powers conferred by the enabling laws, the commission hereby withdraws and cancels the circular dated August 27, 2018 with reference number NAICOM/DAPCIR/14/2018 and titled Tier Based Solvency Capital Policy for Insurance Companies in Nigeria.”
The Commission added that the withdrawal and cancellation of the proposed policy takes immediate effect.
To this end, LEADERSHIP Weekend findings show that Non-Life Insurance Firms are to continue to operate with a minimum of N3 billion
capitalisation; Life Insurance Operators to maintain N2 billion and Composite Insurers are to maintain N5 billion minimum capital base.
There was already a pending case filed by Sir Nnamdi Nwosu and Seven others Vs the National Insurance Commission, demanding the regulatory body to suspend its tier based recapitalisation exercise.
A call put through to Sir Sunny Nwosu by our correspondent was not responded to as at the time of writing this report.
While the Tier based recapitalization exercise was adjudged to have been the best policy to restructure insurance industry, market observers kicked against the four months deadline given to underwriters to recapitalise under the TBMSC, hence, the shareholders went to court to challenge the regulator on this development.