Insurance Bill 2020: NIA opts for risk-based capital thenationonlineng.net - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thenationonlineng.net Daily Mail and Mail on Sunday newspapers.
Ganiyu Musa. PHOTO: Innovation Village
The Nigerian Insurers Association (NIA) has recommended the introduction of risk-based capital to the Consolidated Insurance Bill, describing it as the right model for the insurance industry to align with the market to reposition for growth.
The Deputy Director, Corporate Communications, Human resources & Administration, NIA, Davis Iyasere, who spoke to The Guardian, noted that the recommendation was made during the association’s presentation at the two-day public hearing on the Consolidated Insurance Bill 2020 by the House of Representatives Committee on Insurance and Actuarial Matters in Abuja.
He said the Chairman of the Association, Ganiyu Musa, stated that in adopting the risk-based capital adequacy template, the Association took cognisance of the need to consider insurance, market, credit and operational risks as well as the need to apply such capital charges on assets and liabilities.
Odimegwu Onwumere
Some insurance firms argue that they would pay COVID-19 claim, while others said they would not. In some countries like South Africa, there have been litigations with defendants and plaintiffs asking court to define whether there should be payment to the insureds or not.
In other countries like Nigeria, the umbrella body of insurers, the Nigerian Insurers Association (NIA), believed that its member-companies would honour claims arising from COVID-19.
Looking for proof to back the supposition, some experts argued that there was a similar controversy that surrounded insurance policies in Tunisia and Egypt during the Arab Spring. To the experts, decision on the matter was characterised by confusion given that every policy operated different wordings.