By Adedapo Adesanya
The National Insurance Commission (NAICOM) has outlined regulatory forbearance for the insurance industry that will ensure protection to businesses and policyholders affected by the restriction to movement of the Federal Government.
This was stated in a circular issued recently to insurance operators with referenced numbers, NO: NAICOM/DPR/CIR/29/2020, 01 April 2020 signed by the Director Policy and Regulation, NAICOM, Mr Pius Agboola.
According to the regulator, the forbearance are as follows: “Where Approval-In-Principle for the preceding insurance period had been granted, all renewals or extensions of the foreign reinsurance proportions that become due during COVID-19 movement restriction are permitted for renewal on existing basis.
“Where Approval-In-Principle for the foreign proportion of a new insurance placement is required during the COVID-19 movement restriction, it shall be treated on the basis of “Use and File” subject to prior exhaustion of in-country capacity.
“For the avoidance of doubt, after utilizing available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentation to the Commission thereafter.
“All Post Placement Reports, Reinsurance Treaties and other related special risk foreign reinsurance documentation due for submission during the pendency of the COVID-19 restrictions are to be submitted when movement restrictions are lifted.”
Further, the commission added that all insurance and reinsurance placements should be done in accordance with other relevant extant insurance laws, regulations and guidelines.
It added that all submissions to the Commission including the hard-copies sequel to the above forbearance shall be done not later seven days from the end of COVID-19 movement restrictions.
NAICOM then called on related companies in the industry to support put their foot down as best as they can to support efforts made by the Nigerian government to combat the COVID-19 pandemic.
