Mr Tella Adekunle, an insurance underwriter in Edo, has urged the Federal Government to give tax holiday for insurance firms to cushion the effect of COVID-19 on the sector.
Adekunle said this in an interview with the News Agency of Nigeria , in Benin on Wednesday.
He said that the COVID-19 pandemic had slowed down patronage on insurance products and interventions were needed to enable insurance firms remain in business.
“For instance, patronage for the travel and health insurance package has reduced by over 95 per cent and this is one of the areas we have good patronage.
“Also, insurance companies are paying business interruption claims to many customers who recorded break down in operation due to the pandemic.
“The tax authority, especially at the federal level should introduce a form of tax holiday for firms which mày not necessarily involve outright removal of tax but a reduction of the applicable rate,” Adekunle said.
He said the extension of the recapitalisation process for insurance companies by the federal government would also help mitigate the effect of the pandemic on the sector.
“The National Insurance Commission, the regulatory agency for insurance in Nigeria, has proposed recapitalisation of insurance underwriters including reinsurance firms, of which deadline was Dec.31, 2020.
“But in view of the pandemic, the date has been extended till Sept. 31, 2021,” he said.
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