A fresh recapitalisation in the nation’s insurance industry owing to its low capital base and penetration has spurred mergers and acquisitions to reposition the sector for a new era of efficient operations.

The move, according to stakeholders, is part of efforts by the National Insurance Commission (NAICOM) to make the sector once again attractive to Nigerians.

Following the apathy for the industry, mainly caused by acts of omission and commission manifest in the forms of non-payment of dues to policy holders and the shirking of other obligations over the years, the citizens now avoid insurance products. To reverse the trend, it has, therefore, become incumbent on the regulator to win back the confidence of Nigerians by strengthening the financial base of the sector. If the sector comes fully alive again on the basis of the new policy, the incidental benefits are many. Jobs will be created and the contracting national GDP may experience a breather and an opportunity to expand.

Linking the sector’s stagnation to weak capital base owing to the irregularities which have resulted in the citizens’ incurring losses running into billions, the stakeholders are unanimous in repositioning the sector for greater growth in line with current economic realities.

Among the measures to achieve this are mergers and acquisitions. Companies with enough capacity are buying up smaller ones while the weaker ones put up themselves for acquisition.