Recapitalization: IICC Assures NAICOM of Operators’ Support

The President of Insurance Industry Consultative Council (IICC), Mr. Eddie Efekoha, has assured the National Insurance Commission (NAICOM) of operators support for the success of the recapitalization in order to enhance the industry’s growth.

The president, at the 2019 IICC Media Retreat in Ijebu Ode, while applauding NAICOM for setting the pace, assured that operators will not go against the regulator because the consequences of that is too grievous.

“The wind of recapitalization is blowing. When we came back from South Africa, we heard that of Ghana and the Central Bank of Nigeria (CBN) and I think the insurance regulator should be recommended for setting the pace.”

“I can assure you that the operators will not go against our regulator because the consequences of that are too grievous. However, there is a limit at which operators can control other stakeholders like the shareholders and investors. We cannot stop them from speaking their minds, but whatever they have said do not represent the operators’/managers’ decision,” Efekoha said.

While giving reason for the recapitalization exercise, he said, “The reasons NIACOM gave for the recapitalization exercise is the same reasons CBN is giving which are the issues of exchange rate and capacity.

“If these are the main reasons for the recapitalization exercise, the truth of the matter is that the exchange rate that applied in 2005/2007 is not the same in 2018/19.

“Secondly, if the exchange rate has changed, our ability to retain businesses has weaken. Should we enhance it? Yes! I think we should enhance it.”

Citing an example, IICC President who is also the President of the Chartered Institute of Nigeria (CIIN) and the Managing Director/Chief Executive Officer of Consolidated Hallmark Insurance Plc said, “If you pour water into a glass half way, some would described it half empty, others would described it as half full. If you say half empty, then you are not seeing the positive side of the water, but if you say half full, then you are positive. I think it is time for us to see this recapitalization exercise from the positive side of view.

“I have never seen a policy that only has the good side and no bad side and no timing can be right because it is only God’s time that can be the best. I think that the more we are positive about this recapitalization exercise, the more chances we would have on overcoming some of the challenges that comes with it.

“There was a meeting at the Nigerian Insurers Association (NIA) Secretariat to deliberate on the matter and I don’t think operators are looking at the matter from the side of half empty, but they are viewing the matter from the side of half full and whatever we can take out from this, for the good of this market, we will do.”

He however urged stakeholders including the media to see the recapitalization exercise as half full.

He said the regulator mean well for the industry, adding that the recapitalization is to safe the investors investment

In the same vein, the president, Institute of Loss Adjuster of Nigeria (ILAN), Alhaji Femi Hassan said, “We at ILAN want this recapitalization to take place. We are eagerly waiting for it to take place, because it will enable the operators to put some structures in place that will help to grow the industry.

“I know the operators want this recapitalization to take place, but the investors who have put their money into the insurance companies are the ones kicking against it, but nevertheless, I am optimistic that in the long run, every party will see reason.”

Executive Secretary, Nigerian Council or Registered Insurance Brokers (NCRIB),Fatai Adegbenro, said NCRIB as an integral part of the industry will continue to support NAICOM’s initiative that aims at enhancing the growth of the industry.

He expressed optimism that if all hands are on deck and people are committed to the vision that established the industry, the industry will take its prime place in the nation’s economy.

In attendance at the event included the Director General, CIIN, Richard Borokini, Chairman of the National Insurance Conference Planning Committee, Sir Muftau Oyegunle, President, Institute of Loss Adjusters of Nigeria (ILAN), Alhaji Femi Hassan, Assistant Executive Secretary, NCRIB who is also the Secretary of the National Insurance Conference Planning Committee, Mr. Tope Adaramola and Corporate Communications Managers of both CIIN and NCRIB Messrs. Nonso Okafor and Dele Ayeleso.

About 30 NAIPCO members drawn from print, electronic and new media attended the retreat with the theme “Evolving Media and the Changing Business Climate.”