
The Group Chairman, Heirs Holdings, Mr. Tony Elumelu
The Group Chairman, Heirs Holdings, Tony Elumelu, has proposed N20 billion capital base for life, N30 billion Non-Life and N50 composite insurance operation.
Elumelu said while speaking on the theme of the ongoing NAICOM Conference: ‘Redefining Safety: Insurance Solutions for Public Buildings and Buildings Under Construction’, In Abuja.
He noted that the capital base of N8 billion and N10 billion for Life and Non-life respectively was grossly inadequate, considering the size of Nigeria’s economy as well as the population, which is over 200 million people.
The Heirs Group Chairman said, “today, capital requirements are set at N8bn for Life insurance and N10 billion for general insurance.
“With the devaluation of the currency, you are talking about USD 8 million, USD10 million capital requirements for an insurance company in Africa’s largest economy.
“We should increase the capital base of Insurance Companies to N20 billion for Life and N30 billion for Non-life.
He further urged the regulator to identity reasons for non-compliance and enforce same while also shaping behaviour in the sector.
“Review the dichotomy in Insurance authorisations/licences between life and non-life. Consolidated operators should have N50 billion. Let us use regulation to shape behaviour and enforce compliance”.
Speaking also on the capital base of insurance brokers, Elumelu enjoined the Commission to recapitalised them to the tune of N1 billion. He said this will increase the capacity in the industry increase confidence in them to greater responsibility.
Earlier, the Chairman, Zenith General Insurance, Mr. Jim Ovia while speaking on Insurance and Technology: A synopsis, called on the Commissioner of Insurance, Mr. Olorundare Sunday Thomas to partner with telecoms companies to deploy insurance to all Nigerians. He said the same approach can be deployed to enforce compliance to public buildings and buildings under construction.