The National Insurance Commission (“NAICOM” or the “Commission”) has recently issued circulars to insurance operators to convey the Commission’s decisions towards mitigating the adverse impact of COVID-19 on the Insurance sector.
By a Circular No NAICOM/DPR/CIR/29/2020 dated 27 March 2020, NAICOM, further to its recognition of the impact of the COVID-19 pandemic on the insurance sector, issued directives relating to two major points namely (i) Ongoing 2019 Recapitalisation Plans; and (ii) Business Continuity Plans.
On the Recapitalisation Plans, NAICOM noted that the scope and time period of the impact of COVID-19 on Nigeria was uncertain at the time. NAICOM however encouraged insurance operators to continue to meet their commitments on the recapitalisation process and guaranteed that mitigating measures would be communicated when considered expedient.
With respect to Business Continuity Plans, NAICOM indicated that necessary business continuity measures were being put in place to enable the Commission continue to attend to operators’ requests. NAICOM further urged operators to institute appropriate business continuity plans to meet the needs of insurance policyholders.
By a second Circular No: NAICOM/DPR/CIR/29/2020 issued on 1 April 2020, NAICOM reaffirmed its commitment to business continuity measures to address the effect of COVID-19 on insurance operations in Nigeria. In particular, the circular seeks to ensure the availability of insurance services and the protection of insurance policyholders during the period of restricted movement, imposed as an effort to curb the spread of COVID-19 (the “COVID-19 Lockdown Period”).