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NAICOM goes tough on corporate governance defaulters

The enforcement of the Code of Corporate Governance in the insurance industry by the National Insurance Commission (NAICOM) has forced a major shake-up in the boardrooms of many insurance companies. Already, many chief executives and non-executive directors, who failed to comply with the regulator’s directive to quit after nine years on the boards, are being booted out. This has signalled a new dawn in the industry. OMOBOLA TOLU-KUSIMO reports.

For chief executives and non-executive directors of insurance companies, the fear of breaching the industry’s Code of Corporate Governance is the beginning of wisdom.

As at last March, over 200 non-executive directors who breached the code were said to have been booted out in the wake of the enforcement of the code by the National Insurance Commission (NAICOM).

The Nation learnt that over 70 per cent of the directors of insurance firms who fail to comply with the regulator’s April 30 directive to quit after nine years on the board risk being forced out in the exercise, which experts say promises a new dawn for the risk-bearing industry.

To enthrone a regime of corporate discipline and sanity in the insurance industry, the industry regulator, NAICOM commenced the enforcement of the Code of Corporate Governance as stipulated in Section 5.04 (vii) of the 2009 Corporate Governance Code of the Commission.

NAICOM read the riot act to operators at the ‘2nd Insurers Committee meeting’ in February this year, issuing a directive to 59 existing insurance companies that all non-executive directors who have served up to nine years on their board should quit, effective April 30, 2016.

Before the directive, many non-executive directors on the board of insurance companies, including some chief executives were said to have held the positions for about two decades, despite being public quoted companies and in contravention to the code of good corporate governance.

It was learnt that though the level of compliance with the code by directors of insurance firms grew, following the second Insurers Committee Meeting where the Commissioner for Insurance, Mohammed Kari, informed the chief executives of NAICOM’s intention to come down hard on defaulters, many of them still got on the wrong side of the law.

Heads roll

NAICOM’s sledge hammer has since fallen on former Head of State, General Yakubu Gowon, who, until the Commission’s enforcement of the code, was Chairman of Industrial and General Insurance (IGI) for 24 years.

The Commission’s decision to go full swing in the enforcement of the code also swept away other non-executive directors of the company, including the founding director-general, Nigerian Stock Exchange (NSE), Apostle Hayford Alile and Mrs. Olubunmi Olowude, wife of the late Executive Vice Chairman of IGI, Mr. Remi Olowude.

They have all relinquished their positions in the company in compliance with the Code of Corporate Governance directive.

In his speech at the company’s last year’s Annual General Meeting (AGM), Gowon said their retirement came on the heels of NAICOM’s directive requiring non-executive directors who have served up to nine years on the board of insurance companies to go. He said with the new composition of its board, IGI became one of the first underwriters to fully comply with NAICOM’s directive.

The enforcement of the code also forced out the Chairman of Guinea Insurance Plc, Sir Emeka Offor and four directors of the company, namely, Fred Udechukwu, Eze Smart Nze, Prof. E. L. C. Nnabuife and Mr. Emeka Agusiobo.

Consolidated Hallmark Insurance Plc was not spared either. Six of its non-executive directors exited the board. The Chairman, Ugo Ralph Ekezie, at the company’s 21st AGM announced that changes had occurred in the composition of the board as six non-executive directors have retired.

His words: “These changes are in full compliance with various regulatory provisions, particularly the 2009 NAICOM code of good corporate governance. To immediately fill the vacuum created by the retirement of six non-executive directors, including me, the following highly experienced professionals from diverse disciplines have been appointed, and are to join the board.

“They are Obinna Ekezie Obidegwu, Chief Andrew Odigwe, Mr. Joel B. Avhurvi, Mrs. Adebola Odukale and Prine Onuorah. A new Company-Secretary/Legal Adviser, Mrs. Rukewe Falana has also been appointed to replace Messrs Foundation Chambers. The company has appointed an Executive Director, Finance Systems and Investment with effect from April 1, 2016. He is Mr. Babatunde Daramola.”

On the company’s future outlook, Ekezie said the directors had passed on the baton to a new team of capable hands who would take the company to greater heights. “Our desire is to continue to provide the necessary support to the new members of the board to enable them succeed,” he said.

Also, the Chairman of NEM Insurance Plc, Chief Adewale Teluwo and other non-executive directors, including Sesan Adekunle, Mrs. Olayinka Titilope Aletor and Fidelis Ayebae exited from the board of the company.

Also, pioneer Chairman of Sovereign Trust Insurance Plc, Ephraim F. Faloughi, and other directors retired on April 7, this year, after two decades of meritorious service to the organisation.

Managing Director, STI, Olaotan Soyinka in a statement, said the underwriting firm would be unveiling the new Chairman of the Board of Directors and other directors of the newly constituted Board.

However, some firms complied before the deadline for the enforcement of the code by NAICOM. They are Niger Insurance Plc and Standard Alliance Plc, among others. Some companies like Mutual Benefits Plc, LASACO Assurance, Staco Insurance Plc and many more are however, about to implement the directive.

NAICOM explains position

The Commission said it introduced the enhanced corporate governance and guidelines in 2009 when it issued the Code of Good Corporate Governance in the industry. It said it regularly reviews its policy guidelines to operators in line with changing business environment.

Kari said corporate governance is, particularly, important in the sector to ensure that some financial failures, frauds and questionable business practices do not affect investor confidence, while also ensuring global competitiveness. The country is in the era of change and the insurance sector cannot be left behind, he said. “Under the present dispensation and a rapidly dynamic environment, the industry certainly cannot continue to apply the same methods and approach of conducting its business and expect a different result,” Kari added.

He, however, said the Commission was not unmindful of the challenges in the industry, which required the efforts of stakeholders to navigate to safety.

For NAICOM Director of Inspectorate, Barineka Thompson, the face of regulation in the industry is changing. He said with the changing face, insurers are required to have a robust risk management culture and practice, an effective internal control mechanism, good governance system and transparent reporting systems and disclosures.

“They are also required to have an efficient IT and processes platforms for improved operational efficiency and low cost operations.

‘’NAICOM will adopt appropriate supervisory tools to be much more willing to intervene in management/board governance matters and use predictive analysis tools to monitor forward solvency positions,” he added.

Thompson further pointed out that the transformation agenda is offering the industry the opportunity to readjust its governance, operational structures and leverage on the interest and support provided in the policy direction of the Commission.

“It is expected that companies will begin to review their strategic business and operating models, overhaul product portfolios and distribution strategy, enhance ICT capability and other elements that can stimulate the growth of their overall business,” he said.

Thompson also noted that NAICOM will remain focused on the issues relevant to the protection of policy holders, growth of the insurance sector and promote financial stability.

He said insurers must keep pace with evolving regulations, which are becoming more stringent, affecting everything from capital requirements, to commission rates and customer care.

Operators react

Immediate past President, Nigeria Insurers Association (NIA), Mr. Gus Wiggle, said that with the full implementation of the corporate governance code, there would be improved enforcement of the ‘No premium No cover’ policy.

He also said there would be better adherence to the prudential guidelines, full compliance with the International Financial Reporting Standard (IFRS) and improved anti-money laundering mechanisms coupled with the administrative acumen and ingenuity of insurance chief executives.

Wiggle expressed optimism that with the enforcement of the code, the insurance industry will continue to be the preferred investment destination from renowned players in the world insurance market.

He said on its part, the association would continue to support NAICOM in its desire to build a strong and virile market that would be a point of positive reference in the African insurance space.

The Managing Director, Niger Insurance Plc, could not agree less with Wiggle. While describing the exercise as “a welcome development,” he said it will put the industry at par with the global insurance market.

For Consolidated Hallmark Insurance Plc Managing Director,, Eddie Efekoha, the new dawn that is gradually coming the way of insurance business in the country, following the implementation of the code was fallout of the change of guard at the top echelon of the industry regulator last year.

He said since the coming on board of Kari as new Commissioner for Insurance, he has moved swiftly to continue with the reforms started by his predecessor.”The implementation of the 2009 code of good corporate governance led to the retirement of the six directors of our company, he said.

Efekoha added: “This development cut across the country as over 200 non-executive directors retired in March, 2016.”

In Nigeria, corporate governance became an issue of public discourse after the collapse in the banking sector in the early 2000s. Consequently, industry regulators evolved corporate governance codes to prevent another round of corporate failure.

According to experts, corporate governance is of great importance for public limited liability companies because they raise capital from the stock market and individual and institutional investors hold vast portfolios of shares and other investments in public companies.

August 1, 2016
NAICOM gets N83m for Fire Service

The National Insurance Commission (NAICOM) has resolved a long-standing issue of 0.25 per cent fire service maintenance fund between the insurance industry and the Federal Fire Service as it recouped N82 million for the Service, Commissioner for Insurance, Mohammed Kari, has said.

Kari, who made this known to reporters in Abuja, said the 0.25 per cent is a revenue to be contributed by insurance firms to the fire service maintenance fund.

He said the issue had remained in contention since the enactment of the Insurance Act 2003.

According to him, the revenue is part of the objectives of the market Development and Restructuring Initiative (MDRI) project, adding that it is expected to bring about efficiency and consumer protection in the market and grow insurance premium..

He said the Commission had been working with the Fire Service to address the issue, adding that the Service has the power to seal any business or public building that is not insured.

He said: “We have been able to solve the main area of contention between insurers and the Fire Service which has to do with 0.25 per cent contribution. This has been due since the enactment of the Insurance Act 2003.

“We visited the Federal Fire Service and had discussions with the management. We also engaged the industry and the insurers graciously through the Fire Offices Committee set up by the Nigeria Insurers Association (NIA), which has 41 members contributed N2 million each. Based on this, the Commission was able to collect N82 million for the Fire Service. The Commission also pledged N10 million towards the Service conference in Minna.”

He said the commission, however, would redesign the return forms to indicate the compulsory classes, especially the fire public building insurance so that the 0 .25 per cent could be deducted and paid to the fire service.

He added that they had started redesigning the return certificates to avoid backlogs.

He noted that they had also met with the chief deputy comptroller and constituted a committee, which the fire service nominated three members.

Kari said: ‘’NAICOM has the responsibility to manage the fund because we are not only giving equipment but we will also train the firemen and provide other services in support of the enforcement of public building policy.

“The good thing about working together with the agency is that the fire service has the power to seal any business or public premises that is not insured. We believe that the amount and potential of premium from the insurance of this public building will be a huge boost to the premium income of this industry.’’

He added: “It will also bring development of infrastructure and of the fire services. The meeting we had with the fire services considered the position of the state fire services. We were told that with just N200, 000, some states can buy fire engine. We decided that we will not stop at buying engine but buy some other fire equipment and brand them.’’

July 25, 2016
Life Annuity fund soars to N80b, says NAICOM

The insurance industry presently has between N70 to N80 billion life annuity fund, Commissioner for Insurance, National Insurance Commission (NAICOM) Mohammed Kari has said.

He made this known following calls by the Minster for Power, Works and Housing, Babatunde Fashola that the industry should invest in infrastructural development.

Speaking with journalists in Abuja, the Commissioner said that the annuity fund can be invested into infrastructural development and investment with assurance from government and development institutions that the industry will be able to recoup the funds invested.

He added that the fund is currently building up, noting that it is a huge long term fund.

According to him, despite the law restricting insurance companies from investing more than 25 per cent in non-insurance business, the commission can issue prudential guidelines to amend that part of the law.

He added that if the industry is willing to assist the government with between N10 billion or N20 billion in a year, the Federal Government will do a lot more for the industry.

He said: “If we are willing to show government that we can support them with N10 billion or N20 billion a year, imagine what they will do for the industry. We can even invest in the Bank of Industry and other developmental institution as long as such investments are guaranteed. We can invest some of our accumulated funds in such investment.”

“The short term funds can also be invested since insurance laws does not restrict any company on investment. The prudential guideline that is issued by NAICOM from time to time is what dictates where any company can put in its funds.”

Kari stressed that the industry is at liberty to change its laws to suit the current reality on ground aimed at deepening insurance penetration in Nigeria.

July 20, 2016
NAICOM, West African regulators move against fraud

West African insurance regulators have united to tackle fraud among companies.

They have signed a Multilateral Memorandum of Understanding (MMou) to establish the West Africa Insurance Supervisors Association (WAISA).

Nigerian Commissioner for Insurance, National Insurance Commission (NAICOM) Mohammed Kari said the association would help foster a strong cross border supervision of insurance companies through information sharing and investigative assistance in accordance with the principles of the International Association of Insurance Supervisors (IAIS).

He noted that information sharing, capacity building and supervision is the key to financial growth and stability.

He praised the Commissioners from Ghana, Sierra Leone, Liberia and The Gambia for their support, dedication and commitment in reaching a multilateral agreement.

Kari emphasised the importance of the role of supervisory authority, especially in minimising fraud in the sector in accordance with the Financial Action Task force (FATF) principles on Anti-Money laundering.

He listed some of the gains of the MMoU to include fostering closer relationship and promoting cooperation among the insurance regulators in the sub-region for efficiency and effectiveness.

Commissioner of Insurance, Ghana Miss Lydia Laraba Bawa, described the event as one that would enhance development of the sector in the sub-region and facilitate group-wide supervision.

Sierra-Leone Commissioner of Insurance Augustus Kanu noted that the MMoU would not only help in fostering closer cooperation, but also harmonise regulation in the sub- region.

The Permanent Secretary, Federal Ministry of Finance Anastasia Daniel-Nwaoba, who was represented by the Director, Home Finance Kalli Zaji highlighted the importance of insurance in the economy.

He said the MoU among the regulatory agencies in the sub-region would help in creating an enabling environment for the insurance sector to flourish, especially through collaboration and harmonisation of standards.

June 20, 2016
NAICOM uncovers insurance scams by brokers, underwriters

The National Insurance Commission (NAICOM) has uncovered insurance scams perpetrated by some registered, unregistered insurance brokers and underwriters in conjunction with various state governments.

Commissioner for Insurance Mohammed Kari made this known while speaking at the 2016 Annual Chief Executive Officers Retreat of the Nigerian Council of Registered Insurance Brokers (NCRIB) held in Ilesha, Osun State. The theme was: Growing Insurance Amidst Regulations.

Kari said these activities are illegal, criminal and punishable under the laws of the country. He warned brokers and underwriters alike to beware, adding that the Commission has beamed its searchlight on the firms. He noted that the unrepentant companies and individuals engaged in these schemes would answer for their deeds

The commissioner lamented the increase in number of brokers that are regrettably yet to reflect on the level of insurance penetration in the country. He said: “Indeed the Nigerian Insurance market has grown in the last decades. There has also been a substantial increase in the number of players and activities; although and regrettably too this increase in the number of players especially brokers is yet to reflect on the level of insurance penetration in the country.

“The only possible explanation for this could be that intermediaries are not creating new business neither are they expanding their operations beyond the major cities of the country and around a few clients that are already converted insurance consumers. This should be of serious concern to any right thinking professional.

“The face of regulation has changed over the years, but the objectives and purposes have continued to be providing comfort and confidence to the consumers while at the same time developing the market.”

He stressed that the task of market development is everybody’s, however; it is the trend to quiz the regulator why market penetration is low.

He said penetration would continue to be low if everyone would only operate from the comfort of the metropolis or chase only existing clients with insurance policies.

“The poor penetration of insurance in the country is no more a new statement or information. It is a position we all certainly cannot be proud of. What should be done in this ugly situation is the issue. Developing a robust insurance sector in any country requires developing a good strategy on insurance penetration.

“While the newly formed Insurer’s Committee has set up various sub committees to look at that and more issues, the Commission is complementing those efforts by expanding its enforcement of compulsory insurance’s down to the states level. In the process we sadly found all sorts of under the table arrangements where insurance policies are being offered in conjunction with various state governments to unsuspecting public, sometimes with registered brokers and in most cases with unregistered and unlicensed entities.

“This is Illegal, criminal and punishable under the laws of the country. Brokers and underwriters alike should beware as we have beamed our searchlight to that direction. Unrepentant companies and individuals that are engaged in these schemes would answer for their actions.

“We have also identified the limited channels of distribution as a major inhibition factor to penetration. In this regards, we have considered the creation of additional distribution channels and have gone far on the preliminary works and draft of guidelines which would soon be exposed for input,” he added.

Kari said it is expedient to note that prior to the recent economic challenges, pressure was building for the insurance industry to be more flexible and to approach business in a more dynamic fashion.

He urged insurance institutions to find a way to break out of the soiled systems which perpetuate a limited view of the customer.

It is this view that impresses on us that we are doing well when we snatch a client from another or when we get on a long list of the brokers of a fat government client, though adding no value at all. New models of business and enterprise architecture need to arise; where integrating with newer technology solutions and effecting process improvements that leverage the capabilities of existing personnel and applications can become the norm, he added.

June 13, 2016
NAICOM’s operational licences delay worries stakeholders

About one year after the National Insurance Commission (NAICOM) published names of potential brokers and an insurance company in the national dailies, the Commission is yet to grant many of them operating licences to carry out insurance services in the country.

The delay has sparked agitations amongst the affected stakeholders and experts who fear the regulatory body has closed the insurance market from keen investors.

The potential brokers’ names published shortly before the exit of the former Commissioner for Insurance, Fola Daniel from office, named 18 brokerage firms and an insurance company that had sought licences to operate in broking and underwriting capacities. The publication precisely was on June 29, 2015. The commission asked the general public in the publication to raise objections on any reason why they should not be granted operational licences.

“The general public is hereby put on notice that the under listed firms have applied to obtain operating licences from the NAICOM to transact business as insurance brokers and company respectively. In accordance with extant laws, members of the public are requested to notify NAICOM within 21 days of this publication, either in writing or through the call centre numbers stating any objection or reason why any of the firms should not be registered or granted operating licence,” NAICOM said in the publication.

But 21 days has since passed, and almost one year after, the commission has not indicated receipt of irregularities against these companies. While the commission is yet to license the only insurance company, Heirs Insurance Limited on the list, it has given licence to seven broking firms including Stanbic IBTC Insurance Brokers, a subsidiary of Stanbic IBTC Bank Plc, RSM Insurance Broker, Riskbridge Brokers, Titan Brokers, BI-Meck Brokers, Tespaurath Brokers and Hiscover brokers.

The brokerage firms on the waiting list are Elohim Insurance brokers, Okikiaje Insurance Brokers, Destiny Insurance Brokers, Date Palm Brokers, Green Pacific brokers, LMC Brokers, Avenues Brokers, Topflight Brokers, Eleazar brokers, Banksome Brokers, and ARU & Jay Brokers.

Meanwhile, some industry observers who express worry over the development said some of the investors yet to be granted licence have huge potentials that can turnaround the insurance market.

For instance, an observer who does not want his name mentioned said Heirs Insurance is a potential market developer. It is a fully-owned subsidiary of the Heirs Holdings Group, owned by Chairman of UBA, Tony Elumelu. It is managed by professionals with experience in banking, law, business strategy, insurance and risk management.Heirs specialises in investing in Africa and already have investment in the health sector, agri business, real estate and hospitality, oil and gas, power and the financial services sector.

He stated that with an industry that barely recorded shareholders fund of N349.4 billion, gross premium of N30.5 billion, assets of N838.6 billion, insurance penetration at 0.3 per cent, density at 10 with global ranking at 61, there is need for NAICOM to allow fresh and big investors to come in.

Another industry observer said there is large untapped market in the industry that can increase insurance penetration. He urged NAICOM to encourage new perspective to drive penetration and create more awareness in the country.

He noted that before NAICOM got to the level of publishing names of potential companies, it would have carried out all checks especially financial and security checks.

He said: “Names of companies seeking operational licences were published by NAICOM in case there was any objection from the public. Presently, the Commission has been silent and has not disclosed that it received any report on them from the public.

“It is 11 months now and I think NAICOM should make its intentions about the rest of companies known. Some of these companies have the potential to turnaround the market and they should be granted license to operate.”

May 23, 2016
Law on revocation of licence faulty, says NAICOM

The National Insurance Commission (NAICOM) has said there is a gap in the provision of the insurance law on cancellation of operating licence, especially as it affects non submission of financial accounts by insurance companies.

The Commissioner for Insurance, Mohammed Kari, who made this known while speaking with reporters in Lagos, said may be the gap wold be filled as the committee reviewing the insurance (consolidated) Bill completes their job.

Among other things, the new law will strengthen the enforcement mechanism by increasing the power of insurance regulator to impose sanctions on defaulting companies, he said.

He stated that only 12 insurance companies have submitted their 2015 account out of the 59 existing firms as at March 18, this year, adding that the Commission was able to approve only seven out of the 12 companies that submitted their accounts.

According to him, the law requires an insurance company to submit its audited account six months after the end of the financial year, which is on June 30, next year.

He said the law went further to provide that any company that fails to submit will be liable to a fine ofN5000 each day of default and that is the much the commission can do.

He noted that the law went further to say that non submission of account is a ground for cancellation of licence but failed to state how long a company can default before the cancellation of licence can occur.

He said: “The law, Insurance Act, 2003 requires an insurance company to submit its audited account six month after the end of the financial year on the 30th of June of next year.

“It went further to provide that any company that fails to submit will be liable to a fine of N5000 on each day of default and that is so much that the commission can do. In respect to those companies that have not submitted their accounts, we compute their penalties and get them to pay.

“Let me also inform you that the law went further to say that non submission of account is a ground for cancellation of licence. I am not a lawyer but I think there is a gap in that provision because the law did not tell us at what point you will deem the company to have failed in the submission of accounts. Maybe the gap will be filled as we are reviewing the insurance law. But for now what we do is to penalise the companies for not submitting their account immediately its after 30th of June,” he noted.

April 25, 2016
NAICOM ‘not broke’

•’Fines not substitute for subvention’

The National Insurance Commission (NAICOM) is not broke, the Commissioner for Insurance, Mohammed Kari, has said.

He spoke in Abeokuta, the Ogun State capital, while reacting to insinuations by some operators and shareholders that the Commission has resorted to penalising them with huge fines to raise funds.

The operators believe that NAICOM became broke as a result of its exclusion by the Federal Government from the list of departments and agencies that receive subvention to aid its regulatory operations two years ago.

But Kari said the Commission decided to up the level of compliance in the industry hence, the heavy penalties.

He said: “Government removed NAICOM from the list of department and agencies that receive subvention because it thinks it can survive without any financial support. At the time the financial support was stopped, government’s income has gone down to a level and indeed this directive was issued in the days of corruption.

“So, it doesn’t mean something is wrong with NAICOM and we have survived since then.

“It is not that we are imposing fines on people because we are broke. We just wanted to up the level of compliance and in all the finding we have made, nobody has ever challenged us for imposing illegal fines. But anytime we move to improve the level of compliance, somebody will find a reason to rubbish what we are trying to do.

“The good ones pay quietly but the bad ones complain and don’t pay. We have up the compliance game and it has made a lot of difference. We are willing to continue taking complaints from them as long as we satisfy the consumer,” he said.

In September 2013, the government informed NAICOM that it would stop receiving budgetary allocations from 2014.

The former Commissioner for Insurance, Fola Daniel said adequate measures had been in place to remain self-sufficient.

Explaining that the government’s decision did not come as a surprise, Daniel said long before the Federal Government voiced out its decision to stop financial support to NAICOM, the commission had been remitting funds to the national treasury.

“We can fund ourselves. In 2012, we remitted over N1 billion into the government treasury.

“The government’s decision is a good thing for us because the government has many responsibilities pressing for attention. We believe that the resources being allocated to us can be channeled elsewhere,” the commissioner said.

April 18, 2016
Insurance penetration ‘ll grow, says NAICOM chief

The National Insurance Commission (NAICOM) expects to deepen insurance penetration in the country within the next 12 weeks, Commissioner for Insurance, Mohammed Kari has said.

Speaking with reporters in Ogun State, he said the Commission intends to achieve this by working in a different way to enforce compulsory insurance products especially the Buildings under Construction Insurance law.

According to him, there are six insurance products made compulsory by law by the Insurance Act 2003 and other sister legislations which the Commission has been working to enforce.

He said: “They are Group life Insurance in line with the PenCom Act 2004, Employers liability in line with the Workmen’s Compensation Act 1987, Buildings under Construction-section 64 of the Insurance Act 2003, Occupiers Liability Insurance –section 65 of the Insurance Act 2003, Motor Third party Insurance –section 68of the Insurance Act 2003, Health Care Professional Indemnity Insurance-under section 45 of the NHIS Act 1999

“NAICOM set up enforcement teams in all the 36 states of the federation to monitor compliance with the compulsory insurances. The teams would comprise of the Police, Vehicle Inspection Office (VIO), Federal Road Safety commission (FRSC), Fire Service, planning authorities, Nigeria Insurers Association (NIA), Nigeria Council of Registered Insurance Brokers (NCRIB) among others.”

He noted that the teams were constituted but the Commission has since been working to keep the law enforcement agencies on board.

He said they have however, identified how to ensure successful enforcement of compulsory insurance products, which will in turn deepen insurance penetration.

To this end, he said the Commission is now working with the Federal and State Government to ensure proper enforcement.

He pointed out that despite the fact that Lagos State had implemented the Buildings under Construction Insurance law, the implementation has been faulty.

“Buildings under Construction is one of the compulsory insurances. The Governor of Ogun State, Ibikunle Amosun agreed with us that it has been an issue in the state but he promised us that they will abide by this law going forward.

“We have a law In Lagos that compels every business to insure. The implementation has also been faulty. The implementation of that is not a NAICOM responsibility like most of the implementation of the sections of the law but we are now working with state and Federal Government to see how we can ensure enforcement of this compulsory insurance policy.

“We are working on how to resolve this issue and very soon there will be a clear difference in enforcement of insurance in Nigeria. I promise you the game will totally change. And as we go from state to state to sensitize governments and to show them how insurance can help their economy, create employment and how we can together with them enforce insurance. I assure you we expect a huge deepening of penetration of insurance within the next 12 weeks,” he said.

April 11, 2016
IGI gets NAICOM’s nod to restructure long-term assets

The National Insurance Commission (NAICOM) has approved plans by the Industrial and General Insurance (IGI) PLC to convert part of its long-term assets to liquidity.

The company made this known in a statement signed by its Head, Corporate Communications, Steve Ilo in Lagos.

He said with the approval, IGI can restructure its investment in real estate and subsidiaries, worth billions of naira, by offering them for sale and ploughing back the proceeds into its operations.

He also said IGI was opting for the restructuring as part of measures to raise liquidity for the repositioning of the company in the core business of insurance.

The statement said: “We launched a strategic transformation policy in 2014, which is running well with great expectations for the future. The company needs money to boost its liquidity and enhance its capacity to meet all obligations promptly, including payment of claims.”

“Already, the company has concluded plans to divest from under-performing subsidiaries anywhere they are, with a view to concentrating fully on insurance business in Nigeria.

“IGI remains the most endowed insurer in asset base and we want to leverage that strength to restore our leadership in industry. Some of the properties are already up for sale,” the statement added.

The company, which paid over N3 billion claims to policyholders between 2014 and last year, listed its priorities as meeting obligations promptly, maintaining corporate integrity and delighting the customer and other stakeholders.

April 11, 2016