To curb capital flight from Nigeria’s insurance sector, establishing at least five significant reinsurance companies over the next decade is essential, urged Dr. Sam Onyeka, Lead Director of Transparent Protection Ltd/Gte (TPL).
During a presentation at the recent public hearing on the Reform Insurance Bill held at the National Assembly in Abuja, Dr. Onyeka emphasized the need for these mega reinsurance firms. He explained that their establishment would minimize the large reinsurance funds currently being ceded to foreign companies.
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With the implementation of a risk-based capital regime, Dr. Onyeka stressed the importance of heeding recommendations from the International Monetary Fund (IMF) and the World Bank. He argued that Nigeria requires more well-capitalized reinsurance firms rather than an overly high minimum capital requirement.
Dr. Onyeka, a leading voice in the insurance sector, has used his firm to champion growth initiatives.
Currently, Nigeria has two robust reinsurance companies: Continental Reinsurance and FBS Reinsurance.
