Insurance Shareholders Demand Clear Recapitalisation Roadmap

Unlike previous efforts to increase capital in the insurance industry, where resistance has been evident, stakeholders have reached a consensus on the necessity of injecting fresh capital into the sector. And shareholders are demanding action plans, OLUWAKEMI ABIMBOLA writes

While the Nigeria Insurance Industry Reform Bill 2024 goes through the legislative process at the National Assembly in Abuja, members of the minority shareholder community are demanding answers from the board and management of insurance firms in Lagos as to their preparedness for a recapitalisation should the bill succeed.

Voicing concerns about the preparedness of the insurance sector and firm, at the 32nd annual general meeting of Cornerstone Insurance, the National Coordinator of Independent Shareholders Association of Nigeria, Moses Igbrude, said, “There is a bill at the National Assembly right now. They are saying N15bn, N25bn and all of that. What are you people doing as an industry to make sure that the law that is going to come out will not affect us negatively?

“Then, as an individual company, what are you doing to envisage the outcome of that bill? How are you prepared? What assurances can you give us on what you are doing ahead of the process? There is a new sheriff in town and anytime there is a new sheriff in town, there are always scapegoats.

So, how are you prepared as a company to make sure that you are not the scapegoat? You need to be well prepared.”