The Nation Newspaper

Tag: NAICOM

  • NAICOM’s overarching regulations

    SIR: It is sad that the insurance industry in Nigeria has not been able to prove its mettle, when it comes to adding up significantly to the nation’s Gross Domestic Product as we have in many developing and developed countries. As at today, the industry contributes less than 2% to the nation’s GDP, depicting several bogging challenges facing it, chief of which is poor public perception, poverty of the people and unethical practices by some charlatans who go about in the borrowed robes of insurance operators.

    But it remains a regret that the hope of the industry getting out of the woods may be a mirage unless there is a drastic change in the vision and modus operandi of the National Insurance Commission (NAICOM), the regulatory body that supervises the industry. While it is agreeable that NAICOM should ensure operators strict adherence to rules and ethics in view of the fiduciary nature of insurance, the task of growing the industry in collaboration with the major actors such as the Nigerian Insurers Association (NIA); Nigerian Council of Registered Insurance Brokers (NCRIB); Institute of Loss Adjusters (ILAN) and Association of Registered Insurance Agents (ARIAN) is paramount to the industry’s robust existence.

    Regretfully, NAICOM has to purge itself of the present “headmaster mentality” if it will get the desired cooperation within the industry and ultimately grow the sector. As at today, there is no love lost between NAICOM and most of these operators, particularly the insurers and brokers, due to heavy penalties which the commission is always angling to slam on them at the slightest “offence committed”. This is already giving the operators the impression that NAICOM today is existing to “kill” rather than give life to the industry. It is appreciated that operators needed to adhere to extant laws to protect the integrity of the profession, but implementing such laws must be done with some human face, in view of the fragility of the industry. NAICOM perhaps need to take a cue from other government regulatory bodies such as Securities and Exchange Commission and the Central Bank of Nigeria, to appreciate how they regulate and protect their members even during periods of crisis. It should not be lost on NAICOM that the commission will only exist and be respected if it allows itself have well- nourished and supportive operators under its control. More of the commission’s productive energies should be devoted to growing the industry rather than shrinking it with the existing heavy levies and fines.

     

    • Taiyewo Olugbemi

    Lagos

     

  • Investment in IT key to Nigeria’s growth, says NAICOM chief

    Investment in IT key to Nigeria’s growth, says NAICOM chief

    Nigeria must invest heavily in technological development and management, which will in turn aid growth and suitable competitiveness in various sectors of the economy, Commissioner for Insurance, National Insurance Commission (NAICOM), Mohammed Kari has said.

    He made this call at the maiden conference on Management, Technology and Development of the Abubakar Tafawa Balewa University (ATBU), Bauchi, Bauchi State.

    The Commissioner, therefore, challenged the University’s Faculty of Management Technology to reach out to insurance sector to maximise its contribution of technology in the country and ensure some relationship is developed soonest.

    He noted that as robust as the curriculum vitae (CV) of the faculty was, as read out by the Dean, it was sad to see that it is yet to have a partnership with ithe nsurance sector.

    He said investment in technology is necessary if the country is to maximise the contribution of technology to innovation and productivity in industry.

    He noted that to ensure this, the government needs to address key action areas, which include translating research to business, provide incentives to innovate, local and international collaboration, and technology adoption.

    He said: “Taking full advantage of research and realising the full innovation dividend for the economy requires significant improvements in the translation of research to business. Many systematic and cultural barriers exist, as well as market failures that can be profitably addressed by government action.

    “Incentivising and facilitating businesses, particularly small to medium enterprises, to efficiently adopt new technologies can further lift innovation, productivity growth and competitiveness. Improving collaboration in Nigeria between businesses and publicly funded research institutions including the universities, will significantly enhance innovation. International collaboration is also critically important. Both domestic and international collaboration will improve the productivity and competitiveness of Nigerian technology based firms.

    “Also, technological innovation is key to building industry competitiveness, through increasing productivity and reducing costs, realising commercial opportunities from research investment, and creating new areas of competitive advantage.”

    He rated technology and its application as one of, if not the main driver that can fast track any meaningful development.

    He pointed out that there is no denying the fact that the changes in technology have affected most industries worldwide. According to him, globalisation, which dominates the world today, was influenced mainly by information technology.

    “Information technology (IT) has transformed the process of production, product design, raw materials sourcing, transport, manufacturing, health care, marketing, service delivery and even general management.

    “There is also no denying the fact that industrial competitiveness has enabled countries to increase their presence in international and domestic markets whilst developing industrial sectors and activities with higher value added and technological content,” he added.

  • NAICOM urges MDAs to set up insurance desks

    NAICOM urges MDAs to set up insurance desks

    The National Insurance Commission (NAICOM) has advised Ministries, Departments and Agencies (MDAs) to set up insurance desks or units in their offices to  insure their assets.

    NAICOM boss, Mohammed Kari, made this call while speaking at a meeting with the Comptroller-General of Customs, Col. Hameed Ali (rtd) in Abuja.

    According to him, the desks or units should be manned by qualified insurance professionals.

    This, he said, will ensure their compliance with the provisions of extant laws in all their insurance activities.

    He stressed that advising the government and its Agencies on insurance matters is one of the key functions of the Commission and that the Commision was prepared to offer the service to ensure adequate insurance and protection of all government assets.

    He informed Customs’ boss that the Commission is the adviser to the government on all insurance related matters by virtue of the provision of Section 7(F) of the NAICOM Act 1997.

    The Commissioner, therefore, advised the Customs Service to explore this window of opportunity by ensuring that it complies with the provisions of the law in all its insurance activities. He pledged NAICOM’s support to NCS in insuring its assets and liabilities.

    He also harped on the need to link the NCS database with the insurance industry database for authentication and identification of genuine insurance policies, especially marine and air freight insurances.

    The Customs’ head, in his response, expressed the preparedness of the Service to collaborate with NAICOM in all insurance activities of the Customs Service.

    He suggested the setting up of a joint committee between the two agencies to evolve a working relationship between them.

    The two Agencies, however, agreed to collaborate and work together to ensure that the process of insuring assets of the NCS is seamless, efficient and adequate.

  • NSE, TUC, NAICOM join PenCom board

    The Nigeria Stock Exchange (NSE), Trade Union Congress (TUC) and the National Insurance Commission (NAICOM) have joined the board of the National Pension Commission (PenCom), the Head, Research and Corporate Strategy Department of PenCom, Umaru Farouk Aminu,  has said.

    Aminu made this known during a chat with Insurance and Pension Correspondents in Lagos.

    He said earlier, the Commission had the Nigeria Labour Congress (NLC), Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigeria Union of Pensioners; Private sector and the Federal Government on its board.

  • NAICOM insists on deadline for oustanding insurance claims

    NAICOM insists on deadline for oustanding insurance claims

    The Commissioner for Insurance, Alhaji Kari Muhammad, has said that NAICOM will not go back on the Sept 30 deadline for insurance companies to clear all outstanding claims of policy holders.

    Muhammad said in an interview with the News Agency of Nigeria (NAN) in Lagos on Sunday that National Insurance Commission (NAICOM) would enforce the deadline on effective claims management.

    “ Other reasons for implementing such deadline and sanctions are effective trade practices and fair treatment of policy holders and intending consumers,’’ he said.

    Muhammad said for Nigeria’s insurance industry to be relevant, the prescribed standard of practice set by the commission should be implemented.

    He said the claims Management Guidelines document requires each insurer to develop, document and implement claims management and payment policies.

    The commissioner expressed dissatisfaction with large numbers of unpaid claims by insurance firms, including those with robust capital bases.

    Muhammad said if the situation was allowed to continue, the growth of the industry would be stalled, noting that the current industry level was still below 35 per cent.

    “Also, policy buyers and intending ones will easily lose confidence in the sector as it deepens the poor image of insurance practice in Nigeria,’’ he said.

    Muhammad said NAICOM was determined to check bad practices in the industry through effective claims management and ensure adherence to global standards.

    He commended his predecessor in office, Mr Fola Daniel, for designing policies that encouraged growth in the industry.

  • NAICOM facilitates disputed claims payment

    The National Insurance Commission (NAICOM) has resolved disputed claims of N539.7 million for aggrieved insurance consumers.

    Its Head, Corporate Affairs, ‘Rasaaq ‘Salami, in a statement in Lagos, said the Commission facilitated the payment of the claims to the aggrieved consumers in line with its responsibilities.

    According to him, the claims arose from 34 complaints over delayed or non-settlement of genuine insurance claims in the first half of the year.

    He said the Commission received a total of 147 complaints from policy holders, beneficiaries or their representatives during the period under review.

    He noted that the majority of these complaints are at advanced stages of being resolved.

    According to him, the Commission employs a civil process of resolving these disputes and complaints through correspondences and mediation meetings between all stakeholders.

    He recalled that the Complaint Bureau Unit of the Commission was established  to process and resolve complaints from aggrieved insurance policy owners and beneficiaries in all areas of the business.

     

     

  • NAICOM orders IGI to engage auditing firm

    NAICOM orders IGI to engage auditing firm

    • UnityKapital board barred from meeting

    The Federal Government has issued regulatory orders on Industrial and General Insurance (IGI) Plc and Unitykapital Assurance Plc to checkmate any irregularity that the companies may have in their financials.

    The government through the National Insurance Commission NAICOM) said this is in exercise of the powers conferred on it by the enabling Laws.

    In a statement endorsed by its Head, Corporate Affairs, ‘Rasaaq ‘Salami explained that the orders which were conveyed in separate letters dated July 30 and 31, 2015 were signed by the Deputy Commissioner (Technical) Mohammed Kari who has since July 31, this year being appointed by President Muhammadu Buhari as the new Commissioner for Insurance and Chief Executive of NAICOM.

    NAICOM directed IGI to appoint an auditing firm from among KPMG, PWC and Delloitte to conduct a comprehensive financial review of the company while it restrict the Board of UnityKapital from holding any meeting or taking any further decisions in respect of the affairs of the company.

    The Commission said both regulatory orders are with effect from August 3, 2015 and for initial periods of six months in the case of IGI and 90 days for UnityKapital adding that the orders may be extended to such a period when the Commission is satisfied that there is no potential risk to policyholders of each of the companies.

    The statement read: “The Commission directs IGI to appoint an auditing firm from amongst KPMG, PWC and Delloitte to conduct a comprehensive financial review of the company and submit the report to the Commission within two weeks of the date of the regulatory order.

    “The firm will undertake a comprehensive review of IGI’s accounting system; conduct capital verification and validate the financial position of the company as at July 31, 2015.

  • NAICOM worried over industry knowledge gap

    •CIIN commissions college of insurance

    The knowledge gap in the insurance industry remains high just as professional indiscipline, Commissioner for Insurance, Fola Daniel has said.

    He made this statement at the inauguration of the Chartered Insurance Institute of Nigeria, (CIIN) Insurance College located at the Lagos/Ibadan Expressway, Ogun State.

    The NAICOM boss who said the commission is concerned, said the situation is totally unacceptable.

    He said the situation calls for a cllective effort if the industry is to attain the  professional height and standards we all crave to enable the industry occupy  its rightful position in the  financial services sector.

    He said: “As a prudential regulator, the quality of and technical capacity of insurance practitioners in the country is a major concern to the commission. We will continue to support efforts at ridding the profession of indiscipline while entrenching a culture of professional discipline and adherence to rules and ethical standards.

    “It is our desire in NAICOM to superintend over an insurance industry that is flourishing, financially strong and viable but with the right mix of professionals.”

    This notwithstanding, Daniel said the inauguration of the College of Insurance marks a watershed in the history of not just the Institute but the entire insurance sector.

    “This landmark accomplishment symbolises growth and key to future accomplishment. The CIFMS is a value addition to the quest to better position the CIIN in the industry and, herald a new era of improvement on services rendered by the institute not only for its future growth, but more importantly, for the growth and development of the Nigerian insurance sector practitioners.

    CIIN President, Bola Temowo, said the commissioning follows four years of giant strides in actualising their dream of a college, conceived to change the face of insurance and financial management education in Nigeria.

    He explained that prior to the commissioning, so much had been put in place to justify the development of a full-fledged college.

  • NAICOM unveils guidelines for business

    NAICOM unveils guidelines for business

    The newly introduced Market Conduct and Business Practice Guidelines, shall guide  insurance institutions in the nation, the National Insurance Commission (NAICOM), has said.

    The commission said failure to abide by the guidelines, which take effect from last month would attract stringent sanctions.

    This was made known by the commission’s Deputy Director, Administration and Supervision, George Onekhena, while presenting the rule books to operators at the just concluded 2015 Maiden Insurance Mega Conference in Abuja.

    Onekhena said the Commission is ready to get tougher on erring operators going forward.

    He said NAICOM released the guidelines in exercise of the power conferred on it by provisions of section 49 (1) of National Insurance Commission Act 1997.

    He said the release of the guidelines marks the beginning of Risk- Based Supervision in the industry, stating that they are partly an extract from the World Bank Risk Based Supervision.

    He stressed that the Commission would implement the guidelines to as recommended by the World Bank.

    He said: “The guidelines, among others, set out the framework for fair policies, procedures and effective claims management, trade practices and fair treatment of customers, operations, pricing, commission and associated returns as well as foreign facultative reinsurance placement by reinsurance brokers.

    “Others are appointment, operation, expansion and documentation, registration requirements, accounts, returns and International Financial Reporting Standard harmonisation carve-out for insurance brokers in Nigeria”.

    He further said the objectives of the guidelines are to set out minimum standards required from insurance institutions in their dealings with clients, policy holders and shareholders and other stakeholders.

    “It seeks to promote greater fairness and transparency between policyholders and insurance institutions, establishes strong market conduct among practitioners and stakeholders.

    “It establishes strong market conduct among practitioners and stakeholders. Strong market conduct ethics serve to reduce mistrust that may exist between clients and insurers, and enhanced mutual confidence improves market efficiency. Conversely, weak market conduct ethics are usually the major reason for the poor development of an insurance market.

    “It also provides the board of directors and management of insurance institutions with a framework for the establishment of policies and procedures for effective claims management. This is imperative as insurers stake their reputation and financial stability on the quality and efficiency of their claims operations.”

    Onekhena added that the guidelines provide principles to ensure customers are treated fairly, both before a contract is entered into and through to the point at which all obligations under the contract are discharged.

    He said the guidelines state the responsibility of the insurance institutions in ensuring that their activities are properly coordinated and carried out in a professional manner while it also sets out the general licensing and authorisation requirements for insurers, intermediaries and other insurance institutions.

     

     

     

  • NAICOM confirms Samuel as NICON MD

    NAICOM confirms Samuel as NICON MD

    The National Insurance Commission  (NAICOM), the apex regulatory authority in Nigeria’s insurance market, has named Mr. Bayode Samuel as the Managing Director/CEO of NICON Insurance Limited.

    The confirmation was conveyed in a letter  addressed to the Chairman of the Board of Directors of NICON Insurance Limited and signed by Mr. Pius Agboola, Director (Authorisation and Policy) on behalf of the Commissioner for Insurance.

    NICON Insurance Limited’s Senior Manager (Corporate Affairs), Mr. Ade Adesokan, in a statement, said Mr. Samuel appointment was part of the Board of Directors’ resolution and its desire to reposition the company for better service delivery to her teeming esteemed customers and the insuring public.

    The NICON boss is poised to re-establishing the presence of NICON Insurance Limited as a value creating world player in the Insurance Universe on more by delivering superior financial performance to all its stakeholders, he said.

    According to him, Mr. Samuel, a renowned technocrat and insurance professional of over 30 years experience was until his new, appointment the Executive Director (Technical) of the Company.

    He was also the former Chief Operating Officer (Branch Acquisition, Network and Operations) of the Company, he added.

    “Mr. Bayode started his insurance career in 1984 with the Leadway Assurance Company Limited, where he rose to become the Head of Pensions Department in 1992 before joining Industrial and General Insurance PLC, as pioneer Head of Life and Pensions Division”, he said.

    In 1993, he set up and became the pioneer Managing Director of First Universal Insurance Brokers, a subsidiary of Universal Trust Bank of Nigeria (UTB), a position he held before his appointment as the Chief Executive Officer of Jones Simplix & Company Limited.