The National Insurance Commission has extended the deadline for insurance and reinsurance companies to meet its new capital requirements to September 30, 2021 from December 31, 2020.
It disclosed this in a circular, titled, ‘Segmentation of minimum paid-up share capital requirements for insurance companies in Nigeria.
The commission says the regulated entities must meet about half of the capital requirements by the end of December 2020.
According to the statement the incidence of COVID-19 pandemic has made it difficult to proceed with the 31st December, 2020 recapitalisation deadline.
hence A review of the recapitalisation deadline therefore became imperative.
NAICOM stated that insurance companies that failed to satisfy the required minimum paid-up capital by December 31, 2020 may be restricted on the scope of business they would transact.