STI Commends NAICOM on Tier-Based Minimum Solvency Capital Initiative
Mr. Segun Bankole
Sovereign Trust Insurance (STI) Plc has commended the National Insurance Commission (NAICOM) on the introduction of Tier-Based Minimum Solvency Capital saying the initiative will make their work easy while enhancing professionalism in the industry.
The firm’s spokesperson, Assistant General Manager and Head Corporate Communication and Brand Management, Mr. Segun Bankole, said this in an exclusive interview with this medium in Lagos recently.
He said that Sovereign Trust insurance is fully ready for the full commencement of the initiative, describing it as “a good thing for the industry.”
He said the initiative will make the industry players to focus and concentrate more on their area of capability and competence.
According to him, “We are ready. As I said the other time, a business is a going concern and don’t forget that the tier-based policy that NAICOM has just announced is the same as what is being done in the banks –it is either you want to be a national bank, a regional bank, a community bank or you just practice micro-finance.
“It is within the capacity of your capital. The onion now is for the management and the board to say look, we want to play in the big league. What do you need to do to play in the big league? And you begin to look at the options. How are you bringing in the funds? Okay is it going to be mergers? Are you going to be acquired? It is good for the industry. It will make our operations very very easy. You don’t begin to chase what you cannot handle. If you know that this is what your capacity is, so what do you do? You fortify you strength and begin to look at how to get the best out of that market structure that you want to develop for your own business? “
Tier-based minimum solvency capital structure is recently introduced by NAICOM to support the full implementation of the risk-based supervision programme aimed at enhancing the nature, scale and complexity of the business conduct of insurers. It is a three-level model that specifies the capital requirement for each tier based on risk classification for each tier.
On the company’s performance in 2017, Mr. Bankole said STI grew it profit after tax by 569% and paid claims in excess of N1 billion during the period under review.
He also revealed that the company’s 2017 Annual General Meeting (AGM) is tentatively fixed for September 27, 2018.
