Operators absolve NAICOM on burdening policies in industry
Against believe in some quarters that the insurance industry may have been handed down too many policies that undermine their growth, players in the sector have absolved the National Insurance Commission (NAICOM), stating that it was all in the interest of the industry.
They said that the policies were neither draconian, nor forced on the operators as there was agreement on each case before enforcement.
In the last few years, the nation’s insurance industry has witnessed series of policies from NAICOM targeted at reforming the operations of the industry, as well as aligning with international best practices.
Gus Wiggle, chairman, Nigerian Insurers Association said the policies were already in the insurance law, so what NAICOM has done was to remind us of what we have agreed to uphold.
The only issue which was a concern for us at the time it was announced was probably the timing. “But we have all complied”, Wiggle stated.
“In every society, there must be rules and regulations and as a body, we encourage our members to be proactive as much as possible”.
NAICOM has not done anything draconian; it was only implementation of the law, which we all agreed to work with”.
Bode Opadokun, council member of the Chartered Insurance Institute of Nigeria said NAICOM through the recently inaugurated Insurers Committee has shown its readiness to work with operators in developing the industry.
“This is one approach in regulation that has made a difference, because every issue concerning the industry is looked at by the Committee which is made of up of operators and the regulator”.
So, I would say that we are running well with the regulator and in the interest of the industry, the consumers and also investors, Opadokun noted.
Of recent and under the present administration in NAICOM, was the enforcement of the good corporate governance code, which resulted in over 100 non-executive directors that have spent over 9- years leave the industry. Also is the ongoing plan to fully implement the risk based supervision, for which implementation roadmap is expected to be unveiled next month.
Both policies however has generated a lot of heat and debate, which include agitation and protest from shareholders and shareholder groups who argued that it was undermining the growth of industry and return on investment to shareholders.
NAICOM being a member of the International Association of Insurance Supervisors (IAIS) however is under obligation to protect insurance consumers and investors, by ensuring that firms operate transparently and uphold international best practice.
NAICOM late last year signed a partnership agreement with the National Insurance Commission(NIC), Ghana; Central Bank of Liberia(CBL), Liberia, Sierra-Leone Insurance Commission, the Central Bank of Gambia, to increase insurance supervision across the partnering countries.
Speaking at the signing ceremony which took place in Abuja, Mohammed Kari said such partnership will not only strengthen insurance supervision through information sharing, but also ensure that the country and the continent conforms with the International Association of Insurance Supervision (IAIS) principles.
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