Any insurance company that capitalizes on the Tier-Based Minimum Solvency Capital, TBMSC, policy to de-market another insurer could lose its operating license once the policy kicks-off. The National Insurance Commission, NAICOM, which gave this charge, further warned operators to desist from discrimination or inferior/superior player categorisation in the TBMSC regime.
Director, Supervision at NAICOM, Mr. Barineka Thompson, who stated this at a seminar for insurance correspondents in Abuja, noted that in the TBMSC regime all insurance institutions shall have an obligation to report all market abuse involving the operation of the Tier-Based policy to the Commission immediately. Thompson stated: “No discrimination or inferior/superior adjectives shall be allowed by an insurer/broker of an insurer that qualifies to underwrite business of a specified class of risk.
“There would be sanctioning of CEOs and other relevant officers of insurance institutions, suspension of operational licence for a period of six months, and where the violation persists, the withdrawal of the operating license of the insurance institution, as the Commission may determine. “No insurance institution shall withhold, return or seize the sum of premium arising on or designated for the procurement of cover for a client on account of the operation of this policy where the insurer is certified as possessing the capacity to underwrite the risk in the category of business on which the premium was received or payable.
“All insurers that are certified to operate in a specified risk class by the Commission shall be viewed and treated by insurance institutions and the insuring public as having the same and equal opportunity, rights, obligations and qualifying financial capacity as any other insurer in the same risk class, until an insurer is declared otherwise.