COVID-19 Movement Restriction: NAICOM Rolls Out 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 National Insurance Commission (NAICOM ) has rolled out the following regulatory forbearance.
The commission in a circular to insurance operators and institutions, with referenced numbers, NAICOM/DPR/CIR/27/2020 and NAICOM/DPR/CIR/28/2020
signed by the Director Policy and Regulation, Pius T. Agboola, on behalf of the Ag. Commissioner for Insurance, Thomas Sunday released the regulatory forbearance as follows:
“a)Where Approval-In-Principle for the preceding insurance period had been granted,all renewals or extensions of the foreign reinsurance proportions that become dueduring COVID-19 movement restriction are permitted for renewal on existing basis.
b)Where Approval-In-Principle for the foreign proportion of a new insuranceplacement is required during the COVID-19 movement restriction, it shall be treatedon 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 ispermitted to reinsure the excess of the risk offshore and submit relevantdocumentations to the Commission thereafter.
c)All Post Placement Reports, Reinsurance Treaties and other related special riskforeign reinsurance documentations due for submission during the pendency of theCOVID-19 restrictions are to be submitted when movement restrictions are lifted.
Please note that all insurance/reinsurance placements shall be done in accordance withother relevant extant insurance laws, regulations and guidelines while all submissionsto the Commission including hard-copies sequel to the above forbearance shall be donenot later seven (7) days from the end of COVID-19 Movement Restrictions.
We call on all to be diligent, circumspect and supportive of Government in its efforts totame the COVID-19 Pandemic”, he advised.