NAICOM to shut down underperforming insurance firms
By JOHNMARK UKOKO
- Market sanitisation, recapitalisation top agenda
If feelers from the industry regulator are anything to go by, the newly constituted board of the National Insurance Commission (NAICOM) will soon close down non-performing underwriting companies in the sector.
Chairman, board of NAICOM, Dr. Abubakar Sani, gave the hint when he and members of the board visited the Minister of Finance, Budget and National Planning, Zainab Ahmed in Abuja on Monday.
Sani specifically intimated the minister of plans to carry out an exercise aimed at sanitising the country’s insurance industry, stressing that enforcement of the code of ethics for companies in the sector was already underway.
“We shall enforce the professional code of ethics among the insurance entities and strengthen their corporate governance, which the board believes, will help to sanitise the market.
“The board of NAICOM will in due course revisit the issue of recapitalisation of the insurance industry and will clean up its acts with the enforcement of code or ethics of insurance profession and practice, as well as code of good corporate governance in companies.
As such, the board is working on the best way to sanitise the market and will be closing down companies that are not measuring up to expectation,” he said.
Speaking, Ahmed charged the board and management of NAICOM to develop and implement policies that would strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s Gross Domestic Product (GDP) and the economy.
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She, however, urged the board to be mindful of existing guidelines, regulations and circular that guide the operations and conduct of governing boards of Federal Government agencies and commissions and strictly adhere to them.
“The initiative to embark on this visit barely two months after your inauguration demonstrates your sense of purpose and desire to work closely with the ministry towards realising NAICOM’s mandate.
“During your inauguration, I called your attention to some issues of interests and concerns that require urgent attention in the insurance industry. The visit, therefore, affords me another opportunity to congratulate you again 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 and in this regard, I restate some of the issues and remind you of your role as chairman and members of the board of NAICOM,” she said.
The board, which also comprises the management should develop and implement policies aimed at strengthening the insurance sector and reposition the industry to enhance its contribution to the nation’s Gross Domestic Product (GDP) and the economy.
“It is utmost importance for the new board and the management of NAICOM to work harmoniously together to actualise the mandate of the commission. The board has to develop strategies to systematically build the capacity of members through workshop, seminars, study, tours and other ways to enable effective contribution towards the growth of the industry, especially as some members were not drawn from the insurance sector.
“Members to note that there are guidelines, regulations and circulars that guide the operation and conduct of governing boards of Federal Government agencies and commissions,” she stated.