Positioning For Growth In The Nigerian Insurance Sector

INTRODUCTION

The apex regulator of the insurance sector, National Insurance Commission ("NAICOM") in 2019 issued directives for the increase in the minimum paid-up share capital requirement for all classes of insurance companies in Nigeria¹ . The effective date for compliance with the recapitalisation was initially extended from 30 June 2020 to 31 December 2020² and has recently been revised into two phases due to the impact of the COVID-19 pandemic. The first phase requires a partial compliance of 50% for insurance and 60% for reinsurance companies respectively by 31 December 2020. However, the second phase and deadline for full compliance is due by 30 September 2021³ .

This article explores the (i) impact of external factors on insurance companies' ability to meet the recapitalization requirement; (ii) options available to insurance companies to meet the recapitalisation requirements and expanding their businesses; and (iii) factors to consider in implementing