In its efforts to sanitise the industry, the National Insurance Commission (NAICOM) has revealed that more Insurance companies may be sanctioned over their inability to meet their obligations.
In June, the commission revoked the licence of two ailing insurance firms- Niger Insurance Plc and Standard Alliance Insurance Plc after several palliatives to keep them alive. Non-settlement of claims was a major of their problems
Speaking Thursday at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar, in Lagos, the Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar, said the commission is determined to rid the sector of underwriters who are not settling genuine claims.
“Recently two insurance companies’ licenses were withdrawn and these are; Niger Insurance and Standard Alliance Insurance.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 stated
Speaking on the theme: “Post COVID-19 period where the Insurance industry will be and likely regulatory changes”, Abubakar noted that the Commission has boosted its regulatory framework to ensure operators meet their obligations.
“NAICOM has strengthened its regulatory oversight, Operators have to settle genuine claims within a reasonable time and discharge their obligations.”
“Insurance regulation and supervision are always the bedrock of national economic development. I believed NAICOM reforms and regulatory initiatives will positively impact the insurance industry if achieved and that the Industry will witness tremendous development and growth. I urge you to remain complaints and support the Commission’s efforts,” he added.
On his part, Edwin Igbiti, President/Chairman of Council, Chartered Insurance Institute of Nigeria (CIIN) explained that the seminar examines the national budget, reviews the thrusts of the fiscal and monetary policies of the government and estimates how these would influence the insurance industry in particular and the economy in general.
According to him, prior to the second edition, they first analysed the 2022 national budget as it relates to the Insurance industry and how the industry can reposition itself. The objective of this second part of the programme is to review what we have achieved from the first, where we currently are and to proffer recommendations for the rest of the year for the profitability of the industry.
“I am very optimistic that this second edition will be very insightful considering the challenges bedevilling the country such as; insecurity, high inflation rate, debts, oil subsidy as well as trending matters like the upcoming elections; even though there was a positive projection of the global industry at the beginning of the year, these issues will surely have its effect on the insurance industry and the economy in general. So, this is a great avenue for us to discuss and have foresight on how to effectively manage our various businesses in the industry amidst these threats,” he said.