Insurance reform will increase value creation for shareholders, says Linkage MD

The ongoing reforms in the Nigerian Insurance sector being driven by the National Insurance Commission (NAICOM) would increase industry capacity for big ticket accounts, greater contribution to GDP and more value creation for shareholders.

Managing Director and Chief Executive Officer of Linkage Assurance Plc, Dr. Pius Apere said: “One of the reforms, ‘Risk Based Capital Regime in the Risk Based Supervision Framework,’ would further redefine the way insurance is delivered in this country and offer more rewarding benefits to the generality of Nigerians.

He made the remark yesterday at the Nigerian Stock Exchange (NSE) during its closing gong ceremony.

Apere, who led other directors and executive management to the NSE, said insurance in Nigeria was now better positioned to reward its investors, as capacity for businesses has grown and increased consumer awareness.

“The Risk-based Capital supervision (RBS) about to be introduced by the insurance regulator (NAICOM) in the near future, when fully implemented, will increase the need for capital injection within the Nigerian insurance industry in order to underwrite more special and/or large risks.”

“This is likely to increase mergers and acquisitions within Nigerian insurance industry. Consequently, the drive to inject new capital (through foreign and local investors) will surely increase the trading activities of most insurance companies’ shares/stocks on the Exchange.”

He told Stock Brokers and management of the NSE that Linkage Assurance Plc has repositioned to deliver increased value to all stakeholders, assuring its investors that the company going forward would continue to enhance returns on investment for its shareholders.

Linkage Assurance Plc recently unveiled seven new products as part of its strategy to deepen penetration and gain larger market share, adding: “We are poised to become more competitive and that is why we have developed these products to meet customers.”