The National Insurance Commission (NAICOM) has said that a recent media report (not Economic Confidential) titled “solvency of 5 Insurers fall below regulatory threshold”, was not only false but misleading and out of tune with the extant laws and present realities.
In a statement signed and circulated by the Deputy Director and Head of Corporate Affairs of the Insurance regulatory agency, Mr Rasaaq Salami and made available to Economic Confidential in Abuja, NAICOM noted that “while not holding brief for any company, NAICOM, being the apex Regulatory and Supervisory body of the insurance sector in Nigeria do hereby refutes this claim in its entirety”.
The statement further affirmed that the five companies as mentioned in the publication are financially strong and solvent” and cannot be said to be insolvent.
“With the benefit of hindsight, the report is not only false but misleading as the stated solvency ratios are at variance with the true position. For the avoidance of doubt, Section 24(2) of the Insurance Act 2003 stipulates that the solvency margin of an Insurer shall not be “less than 15 per centum of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid up capital whichever is greater”, the statement further revealed.
Suffice it to say that the solvency test of the financials of insurance companies in Nigeria is based on the provision of extant laws. The Commission reiterates that members of the press should always explore all avenues to verify their facts before going to bed to avoid misleading the public.