By Ngozi Onyeakusi — The Chief Executive Officer Nigerian Stock Exchange(NSE) Mr Oscar Onyema has assured the exchange resolve to introduce some derivatives to take care of takaful insurance products.

Onyema, who gave the assurance when the management the Nigeria Insurers Association paid a courtesy visit to the exchange, commended the association for increasing its advocacy efforts and expressed joy at the increasing participation of the insurance companies on the floor of the exchange.

He described the insurance sector as an important sector of the economy that was too critical to be ignored, while promising to assist them in their bid to meet the new capital requirement.

He urged the insurance companies to make use of NSE’s knowledge sharing platform in its capacity building and corporate governance training.

The Chairman of NIA, Mr Tope Smart, earlier sought the assistance of the Exchange in ongoing recapitalization exercise in the sector.

NAICOM had increased the capital requirements for insurance and reinsurance companies from N2bn to N8bn for life insurance companies, N3bn to N10bn for general business underwriters, N18bn for composite insurers and N20bn for reinsurance companies with a one- year timeline for compliance.

Giving a breakdown of the insurance companies in Nigeria, the NIA chairman noted that out of 59 insurance companies, comprising 14 specialist life insurance companies, 28 general insurance companies, 13 composite insurance companies, two takaful insurance companies and two reinsurance companies, 32 insurance companies were listed on the exchange.

He declared the association’s support for the exchange and welcomed the initiatives aimed at strengthening the cordial relationship existing between the association and the exchange

Director-General, NIA, Mrs Yetunde Ilori, while thanking the NSE boss and his team for the opportunity to visit and exchange ideas on how to collaborate for the benefit of insurance companies, appreciated them for their support in releasing longer- tenured fixed income instruments which insurance companies could leverage for greater value for their long- term products.