Stiff regulations are being adopted by the National Insurance Commission, NAICOM in a bid to sanitize the insurance industry in Nigeria.
The regulator is also positioning the industry for growth and profitability, according the Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar.
Abubakar, warned that having successfully positioned two underwriting firms – Niger Insurance Plc and Standard Alliance Insurance Plc for liquidation, the NAICOM, may apply similar sanctions to others as part of moves to sanitise the industry.
Abubakar, while speaking at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar, in Lagos, said, “Recently two insurance Companies licenses have been withdrawn and these are; Niger Insurance and Standard Alliance Insurance. Though managing the death/failure of Financial Institution is very demanding, nevertheless more may still be liquidated in order to sanitise the Insurance sectors,”.
He submitted that NAICOM has strengthened its regulatory oversight and implored operators to settle genuine claims reasonable time and discharge their obligations.
Abubakar noted that insurance regulation and supervision are always the bedrock of national economic development, stressing that he believed NAICOM’s reforms and regulatory initiatives will positively impact the insurance industry if achieved and that the Industry will witness tremendous development and growth.
He urged insurance practitioners to remain compliant and support the Commission’s efforts.