Indications are rife that more insurance companies would join the capitalised insurance companies before the end of the deadline as more companies are making efforts to recapitalise their operations.

It was learnt that many of the companies are making frantic efforts to source for funds to meet the new minimum capital base requirements before the February 28,2007 deadline.

The Commissioner for Insurance, Chief Emmanuel Chukwulozie had warned earlier that the period would not be extended. This implies that the insurance industry may end up having reduction in the number of operators as in the case of the banking industry.

He said this would not be a measure of weakness in the system as those who scaled the hurdle would not only be well capitalised but also be able to expand their business with corresponding increase in their turnover.

The NAICOM boss pointed out that for the industry to measure up to international standards, the operators must operate with a strong capital base as this would enable them to operate side-by-side with other global players.

He also noted that the emergence of universal banking had posed a serious challenge on the insurance industry; hence any company in the sector that wants to remain relevant must be adequately capitalised.

He, however, said he was impressed by the efforts of a number of companies which had already met the requirements, especially those that had recapitalised in excess of the minimum requirement.

For instance, Zenith General Insurance Company Limited, a subsidiary of Zenith Bank Plc has raised its operating capital to N8 billion, beating the February 2007 deadline.

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The Tide Online is published by Rivers State Newspaper Corporation