The ongoing recapitalisation exercise in the insurance industry is taking a major toll on the budget and attention of operating companies.
At the moment, the focus is on complying with the new minimum capital requirement set for the companies, just as other activities have been put on hold, if not totally forgotten this year.
This year might not see much of product launches, new technological acquisitions as well as rebranding and new campaigns as a result of the ongoing exercise.
Industry watchers say these may not be in the best interest of the market, as any slack in terms of engagements with potential consumers will make them forget the little attention and knowledge they have about insurance and risk management.
Insuring public needs continuous engagement, either by way of new product development, media awareness, and advertising or in the form of innovation so that consistently and gradually the consciousness is sustained.
One of the market watchers said the recent suspension of the rebranding campaign, being handled by a media consultant was not too good, even though the strategy was false in the first place.
He said, what could have been done is to redefine the strategy, give it more bite with grassroots touch and by those who understand insurance journalism.
“It must be the people that understand by their daily engagement with the industry what consumers need and complaints are. By that, you would have been addressing the key issues rather than playing to the gallery without a direct focus on the key issues and people (consumers).
However, as the recapitalisations exercise goes on, companies with clear strategy of continues engagement through different formats and channels will be the beneficiaries and would have succeeded at the end of the day to find more usefulness for the new injected funds.
The National Insurance Commission (NAICOM) had in a circular issued on Monday May 20, 2019 announced increase in the paid-up share capital of life companies from N2 billion to N8 billion; General Business from N3 billion to N10 billion; Composite Business from N5 billion to N18 billion; and Reinsurance companies from N10 billion to N20 billion.
According to the Commission, the minimum paid-up share capital requirement shall take effect from the commencement date of the circular (May 20, 2019) for new applications, while existing insurance and reinsurance companies shall be required to fully comply not later than 30th June 2020, before the recent extension in date to December 31 2020.