The National Insurance Commission (NAICOM) has gaven insurance companies a 13-month ultimatum to recapitalise or lose their licences.
The ultimatum, which became effective from yesterday, raised the minimum paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and Composite insurance from N5 billion to N18 billion.
Re-insurance companies had been directed to raise their capital base from N10 billion to N20 billion.
With the directive, the capital injection requirement has risen by 400 per cent (Life); 333.33 per cent (Non-Life); 360 per cent (Composite) and 200 per cent (Re-Insurance).
The directive was contained in a circular issued by NAICOM to Chief Executive Officers and Managing Directors of insurance companies, mandating them to comply on or before June 30, next year.
The circular, however, exempted micro insurance companies.