Insurers Await Release of N300bn as CBN Commences Due Diligence

Ebere Nwoji Following the recent conclusion of recapitalisation process, insurers are eagerly awaiting the release of N300 billion in their escrow account as the Central Bank of Nigeria (CBN) commences due diligence. Recently, the National Insurance Commission (NAICOM), said it has formally instructed the apex bank to release the funds. The Commissioner for Insurance, Mr Olusegun Ayo Omosehin had at a press briefing in Lagos told the media that insurers would by the end of September receive their funds. Addressing newsmen in Lagos, the Chairman, Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, disclosed that NAICOM has instructed CBN to release the funds. She however assured operators that the funds were expected to be fully returned within this month of October. “NAICOM has done its part by issuing instructions to the CBN. The funds will be returned to the exact accounts from which they were sent once the CBN completes its verification,” she stated. ​She urged insurance operators that crossed the recapitalisation hurdle to deploy the enhanced capital base to expand local underwriting capacity, increase retention during reinsurance renewals, and provide cover for emerging exposures such as cyber and climate risks. She said having successfully concluded the recapitalisation exercise the regulator has come up with implementation of the Risk Base Capital model. She said the regulator has appointed global professional services firm Ernst & Young (EY) as its consultant to guide the Nigerian insurance industry through a transparent and structured transition to a Risk-Based Capital (RBC) regime. According to her, the Commissioner for Insurance, Olusegun Omosehin, announced the appointment during the insurers’ committee meeting alongside other crucial regulatory directives shaping the post-recapitalisation era.