The National Insurance Commission says it has given regulatory forbearance to insurance companies as part of business continuity measures to ensure availability of insurance services and protection of policyholders during the COVID-19 movement restriction.
In a circular to the regulated entities, the commission said where approval in principle for the preceding insurance period had been granted, all renewals or extensions of the foreign reinsurance proportions that became due during the COVID-19 movement restriction were permitted for renewal on existing basis.
Part of the circular read, “Where approval in principle for the foreign proportion of a new insurance placement is required during the COVID-19 movement restrictions, it shall be treated on the basis of use and file, subject to prior exhaustion of in-country capacity.
“For the avoidance of doubt, after utilising available local capacity, the lead insurer is permitted to reinsure the excess of the risk offshore and submit relevant documentations to the commission thereafter.
“All post placement reports, reinsurance treaties and other related special risks foreign reinsurance documentations due for submission during the pendency of the COVID-19 restrictions are to be submitted when movement restrictions are lifted.”
The commission stated that while all insurance and reinsurance placements must be done in accordance with other relevant extant laws, all submissions to the commission including hard copies sequel to the above forbearance must be done not later than seven days from the end of COVID-19 movement restrictions.
NAICOM called on all to be diligent, circumspect and supportive of government in its efforts to tame the COVID-19 pandemic.