LEADWAY ASSURANCE BOSS COMMENDS NAICOM ON INTRODUCTION OF RISK BASED CAPITAL

The Managing Director of Leadway Assurance Company Limited, Mr Oye Hassan Odukale has commended the foresight of the National Insurance Commission (NAICOM) on the introduction of the Tier Based minimum solvency requirement structure.

Mr Odukale said that the introduction of the solvency requirement for Insurers in the country commencing on the 1st of January 2019, will help to restructure the market in a way that Insurers can now choose which part of the consumer (retail, Commercial or Industrial) is best served based on the capital fund that it holds or its able to deploy. He stated further, that with this restructuring, Insurers do not have to be compelled to increase capital to underwrite risks that stress their capital without delivering commensurate returns to their capital providers/ shareholders. He said that the restricting will foster the emergence of players with capacity to become retail specialists.

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