The National Insurance Commission requires the new levels of capital by 1 January 2019.
Nigeria’s National Insurance Commission (NIC) has increased the minimum capital requirements for insurers by threefold in a bid to expand their capacity to handle risk in Africa’s biggest oil producer.
Rasaaq Salami, Spokesman for NIC, said that insurers that want limited deals or do not want to take all the risks in their class of business do not need to raise capital.
Life insurers wanting to take on annuity and group life are required to boost their capital to NGN 6 billion ($16.6 million) from NGN 2 billion, while non-life operators underwriting all risks including aviation and engineering should shore up their capital to NGN 9 billion from NGN 3 billion, added Salami.
Regulators in Africa’s most-populous nation said last year they’d ensure companies aren’t signing up more business than they can handle, so that the industry reduces its risk exposure and boosts liquidity and profitability.
Companies that want to do both life and non-life business, including oil and gas deals, should increase capital to NGN 15 billion from NGN 5 billion.