Naicom bridges gap of 10, 32 years to admit new companies

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By Favour Nnabugwu
The last may not have been heard of the distinctive innovation of the Commissioner for Insurance, Mr Sunday Olorundare Thomas to the National Insurance Commission, Naicom, having bridge the gap of 20years and 32years gab of admitting new companies to the industry.
The Commission gave licenses to 5 companies- 4 insurance of which were admitting 10yesrs ago and one reinsurance after 32years of embargo. Of the 4 insurance companies, 3 are life underwriters and one General company.

Speaking to Insurance Journalists at the 3-dsy Seminar, Thomas recounted that Naicom had not remained the same after his appointment, 

“The commission before my ascending the leadership is not the same commission we have now and I give God the glory.”
“Within the period we have been able to issue licences to 5 conventional operators, 4 insurance companies and 1 reinsurance company”

According to him, “The last insurance company that was admitted into the industry was about 10 years ago and the last reinsurance company was about 32 years ago but by the grace of God, knowing where we are going, there is a need to bring in new operators and it was selective. Out of the 4 insurance companies, 3 of them are life operators”
He said he realise that South African insurance market is largely driving by life companies, so, he took a cue from them.
“Today you will see that one area that is driving the flow of insurance and essentially why the South African market dominates the Nigerian market is because of its life operations, that is how it has been. If you look at the structure of the portfolio of the South African market, it is dominated by life business’
Also, Naicom went further with licensing  four micro-insurance companies while 2others are in the pipeline.
“To this effect, 4 micro-insurance companies have been licenced and an additional 2 are on the verge of being licenced.”

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