5 November 2009
Abuja — Insurance companies in Nigeria don't need stress test recently carried out in the banking sector by the Central Bank of Nigeria (CBN), the Nigerian Insurers Association (NIA) has said.
Chairman of the NIA Wole Oshin said in a statement that the sector is solid enough to provide the need insurance cover for individuals and companies in Nigeria.
He said: "There is no need for a bailout fund for the insurance sector. In fact, the insurance sector remains rock solid to continue to provide the needed insurance protection for individuals and corporate entities including multinationals and conglomerates."
He said at the National Council for Registered Insurance Brokers (NCRIB)'s Annual General Meeting that insurance companies should not be compared with banks in terms of exposure to credit risks. The Director - General of the Association Mr. Ezekiel O. Chiejina said NCRIB is confident that the insurance sector will continue to grow from strength to strength in the years ahead.
He said: "We are particularly happy that despite the magnitude and intensity of the crisis, no insurance company in Nigeria or elsewhere has gone under. To talk of a bail out fund now that the global economy has started showing signs of speedy recovery is to say the least.
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