Two insurer associations, Progressive Shareholders Association of Nigeria and Constance Shareholders Association of Nigeria, have asked the National Insurance Commission (NAICOM) to extend the deadline for raising the minimum share capital to June 30, 2020.
According to both organizations, it is very difficult for insurance companies to raise their capital [4] in view of Nigeria's current economic environment. This NAICOM's requirement may therefore penalize the market.
Of the 46 insurers and reinsurers subject to recapitalization, 26 insurers have already regularized their situation while 17 others have to make amendments to their original draft. Only 3 insurers have not submitted a recapitalization plan. Nigeria's insurance penetration rate was of 0.25% in 2017.
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