NAICOM tasks CHI on risk management, corporate governance as firm faces next decade of growth
The National Insurance Commission (NAICOM) has challenged the board and management of Consolidated Hallmark Insurance Plc (CHI) to remain committed to risk management, good corporate governance and sustainability of growth, as it begins its next decade of business operation in Nigeria.
Mohammed Kari, commissioner for Insurance and CEO, NAICOM who gave the advice during the 10 years successful business merger anniversary of Consolidated Hallmark Insurance Plc, said CHI should put in place strong corporate governance structure to guide the future activities of the company.
Kari who was represented by Pius Agbola, director, authorization and Policy, NAICOM said “as you celebrate your success, do remember that as you are getting bigger in size and performance, so also the risk of higher expectation, corporate governance, and sustainability of growth among others”.
He said is regrettable to note that many of the hitherto regarded major players in the industry have many corporate governance issues leading to poor performance and resulting to regulatory concerns, on-going concerns and systemic risks to stakeholders.
While urging CHI to embrace innovation, technology and new ideas as key to determining the future growth, Kari said “For any business or industry to survive the current and future trends, the nature and extent of the impact of these changes on our operations need to be continuously discussed, and dialogued for pro-active solutions.
“Consolidated hallmark has not only passed through the injury periods, but is waxing stronger and better, 10 years after. The board and management need to be commended for the success and progress so far, Kari said.
Obinna Ekezie, chairman, Consolidated Hallmark Insurance Plc said financial services in Nigeria is no doubt saddled with the responsibility of providing the fulcrum not only for economic growth but the development of the larger society, adding that how well the sector has been able to deliver on these in the last decade thus forms the background of preparations for the role in the next decade.
“The topic of the lecture – Financial Services in the Next Decade therefore aims at x-raying the whole gamut of the sector from banking, Insurance, Consumer perspective – as well as highlighting regulatory developments that are shaping and impacting our businesses.
“Consolidated Hallmark Insurance Plc, like many others have undergone strategic changes to remain relevant and most importantly fulfill our obligations to our customers and indeed other stakeholders. Going into the future, we are investing heavily in our technology, people and processes so that we can offer better services to our customers,” he said.
Ekezie noted that insurance is a tool which absorbs risks from individuals and corporates while at the same time helping to underpin stability and stimulate economic growth and that insurance is, therefore, more relevant today than ever before.
Eddie Efekoha, managing director/CEO of CHI, said the public lecture is the company’s little way of giving back to all who have encouraged its operations in many ways during the past 10 years.
“As we mark the 10th anniversary of our company, post merger of three legacy companies, with this public lecture we are first and foremost grateful to God for finding us worthy to remain in business despite the challenges that came our way. “According to collated research and a recent Harvard Business Review report, the failure rate for mergers and acquisitions (M&A) sits between 70 per cent and 90 per cent”.
“Today CHI is not classified among the failed M&As rather CHI is surviving and among the leading insurance underwriting companies in our market, growing better and stronger, preserving wealth and reducing anxieties of those who came our way. This explains our joy and why we have chosen to celebrate this way,” he said.
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