The regulator announced plans to introduce the new requirements last year, but the measure was challenged in court.
Wednesday 22, May 2019
(Bloomberg) --Nigeria has increased the minimum capital requirement for insurers more than threefold as the industry regulator seeks to improve the sector’s risk management.
The National Insurance Commission stated that existing companies must comply by June next year, while the requirement is effective immediately for the issue of new licences.
Insurers who wants to combine life, property and casualty businesses are required to have capital of at least NGN 18 billion ($50 million), up from NGN 5 billion, while the minimum for property and casualty business is NGN 10 billion compared with NGN 3 billion.
Additionally, the requirement for life insurance is NGN 8 billion versus NGN 2 billion and that for reinsurance is NGN 20 billion compared with NGN 10 billion.