The National Insurance Commission has granted some regulatory forbearance as part of business continuity measures to ensure availability of insurance services and protection of insurance policy holders during the COVID-19 movement restriction.
This was contained in a circular issued by the commission on Wednesday in Lagos.
The circular, dated April 1, with the reference No: NAICOM/DPR/CIR/29/2020, titled: “Re: Effect Of COVID-19 On Insurance Operations,” was signed by Pius Agboola, Director, Policy and Regulation, for the Acting Commissioner for Insurance.
Agboola said the forbearance is in furtherance to earlier circulars on the above subject matter, referenced: NAICOM/DPR/CIR/27/2020 and NAICOM/DPR/CIR/28/2020, dated March 24 and 27 respectively.
He explained that all post placement reports, reinsurance treaties and other related special risk foreign reinsurance documentations due for submission during the pendency of the COVID-19 restrictions were to be submitted when movement restrictions were lifted.
The Director said where Approval-In-Principle for the preceding insurance period had been granted, all renewals or extensions of the foreign reinsurance proportions that became due during COVID-19 movement restriction were permitted for renewal on existing basis.
Agboola said: “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 utilising available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentations to the commission thereafter.”
Agboola said all insurance and reinsurance placements shall be done in accordance with other relevant extant insurance laws, regulations and guidelines.
According to him, all submissions to the commission, including hard copies sequel to the above forbearance, shall be done not later than seven days from the end of COVID-19 movement restrictions.
He urged all to be diligent, circumspect and supportive of government in its efforts to tame the COVID-19 pandemic.”