The National Insurance Commission, NAICOM, says Nigeria’s insurance industry has no other alternative towards recapitalisation and operating within set rules to be ranked among its peers elsewhere.
The regulator says its will ensure operators in the insurance market conduct their businesses in line with set procedures of standard insurance practice.
The chairman of the governing board Dr. Abubakar Sani, unveiled the next approach when the board visited the Minister of Finance, Budget and National Planning, Zainab Ahmed in Abuja and asked for the stealth support of the federal government to achieve all that the Commission has set out for. Sani tells the minister what the plan is, “The NAICOM board will in due course revisit the matter of recapitalisation of the insurance industry and will clean up its act with the enforcement of code of ethics of insurance profession and practice, and the code of good corporate governance in companies. The board is working to sanitise the market and will be taking out companies that are not measuring up to expectations.”
Dr Sani said these exercises would effect major restructuring and eliminate companies that are not positioned to serve in the risk bearing industry. He said the Commission is upbeat on these measures and clears what will follow, “We shall enforce the professional code of ethics among the insurance entities, and strengthen their corporate governance which the board believes will sanitise the market.”
Minister of Finance, Budget and National Planning, Zainab Ahmed, pledging the support of the ministry, implored the board and the management of NAICOM to develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s Gross Domestic Product (GDP).
She said this could spin from deepening insurance penetration by creating an insurance horizon that enables operators to evolve new insurance products and policies
For the board she said, “The initiative to pay this visit barely two months after your inauguration demonstrates your sense of purpose and desire to work closely with the Ministry towards realizing the mandates of NAICOM.”
She also reminded the board of “some issues of interest and concern in the insurance industry which require your urgent attention, This visit, therefore, affords me yet another opportunity to once more congratulate you on your inauguration and inform you that government has a very high expectation of this board. You must build on the successes of the immediate past board.”
The minister urged “the new board and the management of the National Insurance Commission to work harmoniously together to actualize the mandate of the Commission.The Board has to develop strategies to systematically build the capacity of members through workshops, seminars, study tours, etc. to enable effective contribution towards the growth of the industry, especially as some members were not drawn from the insurance sector.”
On the final note Zainab Ahmed said “members should commit to develop and implement policies that would promote the reputation of the industry through prompt payment of claims. Your target should be to take the Industry to greater and enviable heights during your tenure.”