The National Insurance Commission (NAICOM) has said that Universal Insurance failure to successfully get through the recapitalization process was a case of an insurance entity that failed to meet the deadline stipulated by the Commission.
The Commissioner for Insurance Mr. Olusegun Omosehin made this known in Lagos yesterday during a media session with insurance and pension journalists. According to him, ‘’Universal insurance is a case of an entity that couldn’t beat the deadline.
”The deadline for recapitalization was set for the 31st July of 2026. Unfortunately, as of 31st of July. Universal insurance could not meet the minimum capital requirement or summit evidence whilst in progress. And the provision of the law is very clear, and unfortunately the law did not give the Commission discretion as to what should happen at this point.
’There were recapitalization provisions and that has to happen. At about the 14th of August the company wrote for time, an extension for them to raise capital, to sign an MOU, but that is after the fact. I’m not sure that anybody will be at this position and not take decision.
”And for your information that timeline was not 30 days or 60 days, but that timeline was twelve months. So it is a clear case, and what should happen to an entity that did not make the timeline was also very clear. The registration was cancelled and appropriately, a liquidator was appointed. And that process is on.’’
Mr. Omosehin argued that in every democratic system an insurance company have the right of protest. And that is what have been allowed. He said that NAICOM will never shut down an entity that want to contest it decision. ‘’They can contest it. We do not have a problem with that, but that will not change anything.
‘’The case is already in court. But it does not stop us, because the liquidator has taken over and the entity and they are moving on. What that will only do and unfortunately, is that it might delay the process of settlement of the policy holders, because those cases that have been instituted need to be finalized before the liquidator can start making appropriate payments.’’
Further giving reasons for cancellation of Universal insurance registration cancellation, Omosehin said, ‘’Otherwise we set a timeline for this process. We wanted a timeline of six months or a maximum within one year and everything should have been resolved for the life insurance.
”For life business, the portfolio must be transferred within six months to another operating entity that is alive. But in the case of Universal general insurance business, there is one word I will give you: No policyholder will be allowed to suffer in this process,’’ he concluded.
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