Commitment to Recapitalisation and Growth in the Nigerian Market
The SUNU Group, which owns SUNU Assurances Nigeria Plc, has made a clear commitment to meet any recapitalisation requirements that may be set by regulatory authorities. This assurance was shared by Karim-Franck Dione, the Deputy Chief Executive Officer of SUNU Group, during a recent business dinner in Lagos. The event was attended by insurance brokers and executives from the SUNU Group who were visiting the country.
The Nigerian Insurance Industry Reform Bill, currently awaiting presidential approval, introduces significant changes to capital requirements for different types of insurance businesses. Life insurance companies will now need a minimum capital of N10bn, up from N2bn, while non-life insurance firms must have at least N15bn, compared to N3bn previously. Reinsurance companies are also required to maintain N35bn in capital, a substantial increase from the previous N10bn requirement.
In addition to these capital adjustments, the bill aims to enhance consumer protection, ensuring transparency and fairness in insurance practices. It also strengthens the overall regulatory framework within the industry.
Dione emphasized the group’s confidence in Nigeria’s potential and its long-term commitment to the market. “We believe in Nigeria, and we are here to stay,” he said. “SUNU is a financially strong group. If we have to meet recapitalisation requirements, we will do so. Our major shareholders have made this commitment in front of the board, management, and the entire team.”
Despite the challenges associated with doing business in Nigeria, Dione pointed out that the country offers a unique opportunity. “Doing business here isn’t easy, but for an insurer like me, it’s about finding a real market with real power, numbers, and economic strength. Nigeria makes sense for an African to invest in. I believe in Africa’s future, and Nigeria is the largest market in sub-Saharan Africa outside of South Africa.”
He acknowledged some of the daily obstacles faced by foreign investors, including poor infrastructure and unreliable power supply. “Power is a big issue for many industries here. Infrastructure and roads are also critical for trade and movement of goods. Without them, it becomes difficult to operate efficiently.”
Dione also highlighted the complexity of the Nigerian regulatory environment. “Compared to where I come from, the regulations here are very strict. Plus, the competition is intense. There are 56 players in this market, which is more than in France. That’s both a challenge and an opportunity.”
Driving Insurance Penetration through Awareness and Enforcement
When asked about ways to increase insurance penetration, Dione stressed the importance of enforcement. “Insurance should be made compulsory. For example, every building should be covered against fire, and public buildings must have coverage. These measures need to be enforced to ensure progress in the industry.”
Samuel Ogbodu, the Managing Director/Chief Executive Officer of SUNU Assurances Nigeria PLC, echoed this sentiment, noting that lack of awareness is a key barrier to higher insurance penetration. “Most people don’t understand the value of insurance. SUNU is working hard to raise awareness and show people the benefits of our services,” he explained.
Ogbodu highlighted the company’s commitment to paying claims promptly. “We pay our claims regularly. If a policyholder has paid their premium and the claim is genuine, we compensate them immediately. This is one of the core values we uphold.”
He also praised insurance brokers for recognizing SUNU as a reliable partner. “We are open to expanding our collaboration with brokers and ensuring that Nigerians receive the best possible insurance solutions.”
By focusing on customer satisfaction, regulatory compliance, and market education, SUNU Assurances Nigeria PLC is positioning itself as a leader in the evolving Nigerian insurance sector. With a clear vision and strong financial backing, the company is well-equipped to navigate the challenges and opportunities of the market.
