The National Insurance Commission, NAICOM, has directed insurance firms in the country to maintain sanctity of insurance contracts entered into with clients.
In a circular titled RE: EFFECT OF COVID-19 ON INSURANCE OPERATIONS: referenced NAICOM/DPR/CIR/27/2020 and NAICOM/DPR/CIR/28/2020 dated 24 and 27 March 2020 respectively, the regulator granted firms some measure of leeway as part of business continuity measures and to, as much as possible, ensure availability of insurance services and protections of insurance policy holders during the COVID-19 movement restriction.
The NAICOM in the circular granted that Where Approval-In-Principle for the preceding insurance period had been granted, all renewals or extensions of the foreign reinsurance proportions that become due during COVID-19 movement restriction are permitted for renewal on existing basis.
It also said that where Approval-In-Principle for the foreign proportion of a new insurance placement is required during the COVID-19 movement restriction, it shall be treated on the basis of “Use and File” subject to prior exhaustion of in-country capacity, adding that for the avoidance of doubt, after utilizing available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentations to the Commission thereafter.
Also granted is that all Post Placement Reports, Reinsurance Treaties and other related special risk foreign reinsurance documentations due for submission during the pendency of theCOVID-19 restrictions are to be submitted when movement restrictions are lifted.
The regulator in the document signed by Pius T. Agboola, Director, Policy and Regulation, also noted that all insurance/reinsurance placements shall be done in accordance with other relevant extant insurance laws, regulations and guidelines while all submissions to 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.
It advised firms to be diligent, circumspect and supportive of Government in its efforts to tame the COVID-19 Pandemic.