The National Insurance Commission (NAICOM) has rolled out some regulatory forbearance as part of business continuity measures to ensure availability of insurance services and protections of insurance policyholders during the COVID-19 Movement Restriction.
The commission in a circular to insurance operators and institutions, signed by the Director Policy and Regulation, Pius Agboola, on behalf of the Ag. Commissioner for Insurance, Thomas Sunday released the regulatory forbearance as follows:
“Where Approval-In-Principle for the preceding insurance period had been granted, all renewals or extensions of the foreign reinsurance proportions that become due during COVID-19 movement restriction are permitted for renewal on existing basis”
“Where Approval-In-Principle for the foreign proportion of a new insurance placement is required during the COVID-19 movement restriction, it shall be treated on the basis of “Use and File” subject to prior exhaustion of in-country capacity.
For the avoidance of doubt, after utilizing available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentations to the Commission thereafter.
“All Post Placement Reports, Reinsurance Treaties and other related special risk foreign reinsurance documentations due for submission during the pendency of theCOVID-19 restrictions are to be submitted when movement restrictions are lifted.”
The circular said that all insurance/reinsurance placements shall be done in accordance with other relevant extant insurance laws, regulations and guidelines while all submissions to the Commission including hard-copies sequel to the above forbearance shall be done not later seven (7) days from the end of COVID-19 Movement Restrictions.
The Commissioner called on all to be diligent, circumspect and supportive of Government in its efforts to tame the COVID-19 Pandemic.