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Tag: NAICOM

  • NAICOM pushes for compulsory insurance with Governors’ Forum

    NAICOM pushes for compulsory insurance with Governors’ Forum

    The National Insurance Commission (NAICOM) has intensified efforts to expand the adoption of compulsory insurance policies across Nigeria, targeting state governments through strategic engagement with the Nigeria Governors’ Forum (NGF).

    This move is a critical step in NAICOM’s broader mandate to deepen the culture of insurance across the nation and ensure compliance with compulsory insurance laws.

    The commissioner for Insurance and Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, led the charge during a recent visit to the NGF Secretariat in Abuja.

    In his meeting with the director general of the NGF, Dr. Abdulateef Shittu, Omosehin outlined NAICOM’s mission to strengthen collaboration between the federal and state levels in promoting compulsory insurance.

    “One of the mandates of the National Insurance Commission is to deepen the culture of insurance by ensuring nationwide compliance with the compulsory insurance provided by our laws,” Omosehin stated.

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    He noted that while federal agencies have driven compliance at the national level, there is a pressing need for greater cooperation and collaboration at the state level to achieve comprehensive coverage.

    The commissioner’s visit to the NGF Secretariat was aimed at establishing a coordinated approach to engaging state governments.

    Omosehin stressed that the partnership with the NGF, as the policy hub for state governors, is essential to the success of this initiative.

    “We are here to discuss how a coordinated approach can be adopted in working with the states, and this collaboration must begin with engaging the NGF Secretariat,” he said.

    Omosehin acknowledged that past efforts to promote compulsory insurance at the state level have yielded limited results.

    However, he expressed confidence that by addressing the challenges differently and centralizing the approach through the NGF, NAICOM could achieve better outcomes.

    He noted that the Commission chose to start with the NGF to engage the Secretariat and share ideas on how best to move forward.

    A key aspect of the Commission’s strategy involves the domestication of laws related to compulsory insurance by state governments.

    Omosehin cited Lagos State as an example of successful domestication and urged other states to follow suit.

    He highlighted the need to centralize the approach to ensure uniform compliance across all states, particularly concerning motor third-party insurance, which is a significant source of internally generated revenue (IGR) for states.

    The Commissioner also underscored the importance of raising awareness across the states about the value of insurance in protecting assets and ensuring financial stability.

    In his response, Dr. Abdulateef Shittu, Director General of the NGF, expressed optimism about the potential impact of the partnership. He praised NAICOM for taking the initiative to engage with the NGF and assured Omosehin that the Forum is committed to supporting efforts to deepen insurance penetration across the country.

    Dr. Shittu also took the opportunity to explain the role of the NGF Secretariat as a policy hub and a resource centre for the 36 state governors in Nigeria.

    He emphasised that the Secretariat serves as the technical and administrative arm of the Forum, providing services and policy formulation to facilitate the work of the governors.

    “The NGF Secretariat is a one-stop shop for any business you want to do with the states,” Shittu added, highlighting the efficiency and accessibility of the Forum’s administrative arm.

    As a result of the meeting, NAICOM and the NGF Secretariat agreed to develop a concept note outlining the next steps in their collaboration. With a delivery room assessment already conducted, both parties are eager to move forward with the initiative.

    A joint committee has been established to oversee the implementation of the agreed-upon strategies, signalling a strong commitment to making compulsory insurance a standard practice across all Nigerian states.

    This development marks a significant milestone in NAICOM’s ongoing efforts to enhance insurance coverage and compliance throughout Nigeria.

    By securing the support and cooperation of state governments through the NGF, NAICOM is poised to make substantial progress in its mission to protect citizens and strengthen the nation’s insurance framework.

  • Why we licensed NPF Insurance, by NAICOM

    Why we licensed NPF Insurance, by NAICOM

    Following public outcry on the establishment of a police insurance company, NPF Insurance Limited, the National Insurance Commission (NAICOM) has said it is watching the objections for and against issuing the licence to the Nigerian Police.

    Commissioner for Insurance, Mr. Olusegun Omosehin said this at a media conference in Lagos.

    He said the commission would allow the process go through before stating its position.

    He submitted that NAICOM is opened to licensing of new firms, but those interested in having a licence must meet the requirements.

    One of themose who objected to the licensing of NPF Insurance is the former Commissioner for Insurance, Mohammed Kari.

    Kari had expressed his objection in a letter dated July 25, this year addressed to the Commissioner for Insurance, in which he copied the Minister of Finance; Chairman of National Insurance Commission; Chairman Senate Committee on Banking, Insurance and other Financial Institution; Chairman of House Committee on Insurance and Actuarial Matters; Director-General, Bureau of Public Enterprises and Chairman of Nigerian Insurers Association (NIA).

    NAICOM had recently in an advertorial in some national newspapers said it had received an application from The NPF Insurance Company Limited for registration and had requested the public to submit/report any objection or otherwise against the registration to it within 21 days.

    Kari, the Waziri Bauchi, said: “I am writing to object to the registration of the NPF Insurance Company Limited, and my objection is based on several critical concerns that I believe warrant serious consideration.

    “In fulfillment of the statutory provisions of extent laws for the registration/licensing of insurance companies, the public is hereby informed that the Commission has commenced the process of registering the company. The public is requested to submit/report any objection or otherwise against these registrations to the Commission within 21 days from the date of this publication, please.”

    Read Also: NAICOM hails NDPC for data, privacy, awareness

    Kari, who has spent 44 years in the industry, submitted: “The core operations of the Nigeria Police Force are fundamentally at odds with commercial activities. The primary mandate of the Police is to maintain law and order, not to engage in business ventures. Allowing the Police to operate an insurance company could lead to conflicts of interest and distract from their essential duties. The Police is a regulator of sorts, they cannot be enforcing the law on compulsory insurance and be a provider of Insurance. The temptation to force motorist to insure with their company will be irresistible.”

    Continuing, he said: “The structure and ownership requirements stipulated by Nigerian insurance laws and Financial Reporting Council necessitate a level of expertise that is lacking within the nominated Board of Directors and the Police Force. Another requirement is a spread in ownership to avoid undue influence on the company by one shareholder. The authoritative nature of the police and their potential representation on the Board of Directors could lead to undue interference in the management of the insurance company, compromising its independence and effectiveness.

    “The Nigeria Police Force Investments have a history of mismanagement, as evidenced by the numerous issues surrounding the Nigeria Police Pension Scheme. This history raises significant doubts about the ability of the Police to effectively manage an insurance company, which requires a high level of expertise and know-how. “The fragmentation of the insurance business would result in the loss of valuable data and income for the industry. The entry of the Nigeria Police into the insurance market could disrupt the existing ecosystem, leading to inefficiencies and potential data loss that could harm the overall industry.

    “In case they are floating the idea of a captive, I don’t believe the Nigeria Police Force has enough business spread or expertise to support the survival of a captive company neither do they have the reputation to attract independent business. This would expose public funds to unwarranted loss.”

    “The command-and-control nature of the Police force would make them take offence of a caution by a regulator. I don’t see how the Police can operate under someone’s regulation, for they would not accept commercial directive, and neither would they observe regulatory control. It would compromise the authority of the regulator if one company is seen to ignore regulatory control or outrightly disregard them, the regulator would lose his authority to regulate the market.

    “When I was an operator and their insurer, the NPF, as a consumer had detained a Head of Department and me, the CEO, when we rejected to pay for a loss that was not insured on their policy. Can the CEO of an NPF Insurance Company refused to pay any demand of his owners, whether insured or not?

     “When I was a regulator, the NPF as a consumer, have requested on many occasions to obtain waivers to bypass the industry to place their businesses  abroad, and on all occasions, we have refused them. (These requests were made against the advice of their broker and insurer) I can just imagine what they would do as a registered insurance company.”

    He maintained that approving the application could set a wrong precedent. “It may encourage other government agencies, such as the Federal Road Safety Corps, Nigeria Customs Service, Nigerian Army, Navy, and Air Force, Nigeria Civil Defence Corps, Office of the Head of Service of the Federation and others, to seek similar licences. And why not? the Commission can, therefore, not refuse them. This proliferation of government-run insurance companies could undermine the integrity and stability of the insurance sector and reverse the government policy of divesting from business, which as you remember, was the reason of the creation of the Bureau for Public Enterprises (BPE). I suggest you seek the opinion of the Bureau as you continue with your consideration.”

    On the advertorial, NAICOM had listed board members of the would-be NPF Insurance Company Limited to include: Oke Temitayo, Managing Director/CEO; Adenaike Olufemi Adebowale (AIG rtd); Ekechukwu Mac; CP Sulaiman Muhammad; CSP Ameh Lydia; CSP Adedeji Adewole Julius; Amore Olusola Emmanuel, CP. (rtd); Rev. Paul-Odeli Joshua; Balogun Oluyinka Abayomi; Akinwunmi Tunde Olufemi; and Musa Ba’aba Ibrahim.

    Kari urged NAICOM to reject the application for the registration, noting that it is imperative to maintain the focus of the police on their primary responsibilities and to ensure that the insurance sector remains managed by entities with the requisite expertise and independence.

    Kari, from 1979 to 2023, was the Managing Director/CEO of Nigeria Reinsurance Corporation and NICON Insurance Plc and later the Commissioner for Insurance/chief executive of the National Insurance Commission (NAICOM).

    He was also a consultant and had the benefit of being an insurer to Nigeria Police Force (NPF), a reinsurer to their insurance providers and of a regulator.  

    Aside Kari, other stakeholders have expressed objection to the application, while canvassing that the Police should focus on their core responsibility which is ensuring security of the nation.

  • ‘Ailing insurance firms impacting negatively on sector’

    ‘Ailing insurance firms impacting negatively on sector’

    Ailing insurance companies are having negative impact on the insurance sector, the Commissioner for Insurance, National Insurance Commission (NAICOM), Olusegun Omosehin has said.

    Unhappy about the development, the commissioner said the agency would go after managers of such companies, vowing not to allow them go with their misdeeds.

    He spoke at a press conference in Lagos.

    He said people who run down insurance companies would be made to revive them.

    He further stated that henceforth, people who have been involved in the failure of insurance companies would be blacklisted and barred from taking up positions in the industry.

    Omosehin said his administration in the past three months of assuming leadership at NAICOM, has been working hard to reposition the industry.

    He said NAICOM has been following statutory processes in handing ailing companies, stressing that the Commission is not interested in killing companies, but ensuring that they are revived to ensure protection of policyholders.

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    He said: “The mandates of my administration are to regulate; coordinate and develop. Based on this, my key focus are prioritise consumer’s issues; strengthen NAICOM’s capacity to regulate; soundness of operators; innovation and accessibility and deepening penetration.

    “My administration has also prioritise prompt claims payment as operators are now encouraged to pay genuine claims without any complaint.”

    Omosehin stressed that   the industry has to be positioned to meet the Federal Government’s ambition of achieve $1 trillion economy, even as he solicited supports from all stakeholders to enable NAICOM accomplish the mandate of building a very strong and acceptable insurance industry.

  • NAICOM hails NDPC for data, privacy, awareness

    NAICOM hails NDPC for data, privacy, awareness

    The National Insurance Commission (NAICOM) has lauded the National Data Protection Commission (NDPC) for its proactive approach in raising awareness and building capacity before fully enforcing the data privacy law in Nigeria.

    This commendation was made by the Commissioner for Insurance (CfI) and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, during a courtesy visit by the National Commissioner and CEO of the NDPC, Mr. Vincent O. Olatunji, to NAICOM’s office in Abuja.

    Omosehin expressed his appreciation for the NDPC’s efforts, noting that the Commission’s strategy of prioritizing awareness and capacity building reflects a commitment to ensuring that stakeholders are adequately prepared before the full implementation of the data protection law. This, according to him, is essential for fostering a culture of compliance and understanding among the entities regulated by NAICOM.

    “The NDPC’s initiative to first educate and equip the necessary stakeholders with the knowledge and skills needed for compliance before moving to enforcement is highly commendable,” Omosehin stated.

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    He further assured the team that NAICOM is fully prepared to collaborate with the NDPC to achieve the mandates of both agencies. “We are ready to work closely with the NDPC to ensure that the goals of data protection are fully realised within our sector. The protection of data privacy is a critical issue that aligns with our own mandate to safeguard the interests of policyholders and the integrity of the insurance industry,” he added.

    Responding, Olatunji expressed gratitude to Omosehin for the warm reception and the positive feedback on the NDPC’s initiatives. He highlighted that the NDPC, being one of the newly established agencies by the Federal Government, is currently on a mission to raise awareness about the data protection law across various sectors.

    The NDPC’s visit to NAICOM, he explained, is part of a broader strategy to engage key stakeholders and seek their cooperation in embedding robust data protection policies within their operations.

    “We are here not only to create awareness about the importance of data protection but also to seek NAICOM’s support and collaboration. Our goal is to ensure that data protection principles are effectively integrated into the practices of all entities regulated by NAICOM,” Mr. Olatunji said. He emphasized the importance of partnership between the two commissions, noting that such collaboration is crucial for the successful entrenchment of data privacy standards across the country.

    With the increasing importance of data privacy in the modern economy, the collaboration between NAICOM and NDPC is expected to play a pivotal role in strengthening compliance with data protection regulations in Nigeria’s insurance sector, ultimately contributing to the overall development of the country’s financial system.

  • NAICOM unveils licensing portal for agents

    NAICOM unveils licensing portal for agents

    The National Insurance Commission (NAICOM) has launched a new licensing portal for the registration and renewal of insurance agents’ licenses.

    The new platform, which will be operational from August 1, 2024, will simplify the licensing process and minimize manual intervention in the insurance sector,

    According to a statement from NAICOM yesterday in Abuja, “the launch of the new portal is a strategic move by the Commission to enhance efficiency in the licencing process”.

    By digitizing the application and renewal procedures, NAICOM said it “aims to reduce bureaucratic delays and improve the overall experience for insurance agents and companies”.

    According to NAICOM, the new portal—accessible at [https://agent.naicom.gov.ng] (https://agent.naicom.gov.ng)—will significantly ease and fast-track the licensing process.

    The portal is designed to handle all applications for registration and renewal of agency licenses, ensuring a more streamlined and user-friendly process.

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    Key features of the new licensing portal include enhanced efficiency as the portal is expected to expedite the processing time for licensing applications, thereby reducing waiting periods for agents. By automating much of the application process, the portal minimizes the need for manual handling, thus decreasing the likelihood of errors and delays. The portal is designed with an intuitive interface to facilitate ease of use for all agents and insurance companies.

    NAICOM has advised all registered agents and insurance companies to take note of the new portal’s launch and to be guided accordingly. The commission emphasized that all pending applications, which have not yet been registered on the old portal, should be resubmitted through the new system.

    This move aligns with NAICOM’s ongoing efforts to leverage technology for improved regulatory processes and to foster a more efficient insurance market in Nigeria.

  • NAICOM launches new licensing portal for insurance agents

    NAICOM launches new licensing portal for insurance agents

    The National Insurance Commission (NAICOM) has announced the introduction of a new licensing portal for the registration and renewal of insurance agents’ licenses.

    The new platform, which will be operational from August 1, 2024, will simplify the licensing process and minimize manual intervention in the insurance sector,

    According to a statement from NAICOM on Wednesday in Abuja, “the launch of the new portal is a strategic move by the Commission to enhance efficiency in the licensing process”.

    By digitizing the application and renewal procedures, NAICOM said it “aims to reduce bureaucratic delays and improve the overall experience for insurance agents and companies”.

    According to NAICOM, the new portal—accessible at [https://agent.naicom.gov.ng](https://agent.naicom.gov.ng)—will significantly ease and fast-track the licensing process. The portal is designed to handle all applications for registration and renewal of agency licenses, ensuring a more streamlined and user-friendly process.

    Read Also: NAICOM aligns with Tinubu’s $1tr economy target

    Key features of the new licensing portal include enhanced efficiency as the portal is expected to expedite the processing time for licensing applications, thereby reducing waiting periods for agents. By automating much of the application process, the portal minimizes the need for manual handling, thus decreasing the likelihood of errors and delays. The portal is designed with an intuitive interface to facilitate ease of use for all agents and insurance companies.

    NAICOM has advised all registered agents and insurance companies to take note of the new portal’s launch and to be guided accordingly. The commission emphasized that all pending applications, that have not yet been registered on the old portal, should be resubmitted through the new system.

    This move aligns with NAICOM’s ongoing efforts to leverage technology for improved regulatory processes and to foster a more efficient insurance market in Nigeria.

  • NAICOM aligns with Tinubu’s $1tr economy target

    NAICOM aligns with Tinubu’s $1tr economy target

    The National Insurance Commission (NAICOM) has pledged to align the insurance sector with President Bola Tinubu’s Renewed Hope Agenda, aiming to grow the economy to $1 trillion by 2030.

    This commitment was made by the Commissioner for Insurance and CEO of NAICOM, Olusegun Ayo Omosehin, during the investiture of Mrs. Yetunde Ilori as the 52nd President of the Chartered Insurance Institute of Nigeria (CIIN).

    In his address, Omosehin emphasized the critical role of leadership in the insurance sector, especially amid significant economic challenges and opportunities. “Leadership in the insurance sector is more critical now than ever before as we navigate a world of significant economic challenges and great opportunities. The insurance industry must continue to evolve and adapt to meet the changing dynamics of our society,” he stated.

    Omosehin noted the pivotal role of Mrs. Ilori as the new president of CIIN in driving this transformation. He expressed confidence that under her leadership, the Institute would continue to be a beacon of excellence and a catalyst for positive change.

    “Mrs. Yetunde Ilori will play a pivotal role in driving this transformation, ensuring that the Institute remains a beacon of excellence and a catalyst for positive change,” he said.

    Reaffirming NAICOM’s commitment to a robust, resilient and stable insurance industry, Omosehin underscored the sector’s importance to the country’s economic stability and growth.

    “It is important to reaffirm our collective commitment to promoting a robust, resilient, strong, and stable insurance industry that contributes to the economic stability and growth of Nigeria,” he said.

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    Omosehin called for collaborative efforts to reposition the insurance profession and rebrand the industry, emphasizing the need for improved public perception and understanding. “Emerging realities and developments at the global and national levels today obviously call for our collaborative effort to reposition the insurance profession and rebrand the industry such that our narratives can be better understood by all. We should be mindful of the perception of the insurance profession by the public and be deliberate in putting our narratives across,” he urged.

    NAICOM views the CIIN as a vital partner in developing skilled professionals essential for achieving these goals. Omosehin reiterated NAICOM’s continuous support for the Institute and expressed eagerness to explore additional mechanisms to enhance their relationship and improve public confidence in the insurance industry.

    “At NAICOM, we view the CIIN as one of our veritable partners in the development of the much-needed skilled professionals in the course of achieving this goal. It is therefore imperative to reiterate our continuous support to the Institute in the discharge of its responsibilities and look forward to exploring additional mechanisms of enhancing the existing relationship with the Institute and in facilitating improved perception, transparency, and public confidence in the insurance industry,” he said.

  • ‘NAICOM, NFIU collaboration to boost integrity’

    ‘NAICOM, NFIU collaboration to boost integrity’

    The National Insurance Commission (NAICOM) and Nigerian Financial Intelligence Unit (NFIU) are working to ensure robust financial regulations and safeguard the integrity of the financial system. Commissioner for Insurance/CEO of National Insurance.

     This was made known when the NAICOM Commissioner Olusegun Ayo Omosehin, along with his management team, welcomed the Management team of the Nigerian Financial Intelligence Unit led by its Chief Executive Officer, Hafsat Abubakar Bakari, during their visit to the Commission in Abuja.

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    Omosehin expressed gratitude to the NFIU for the collaboration, saying that NAICOM has reaped from this partnership.

    He commended the NFIU for their coordination and the progress made by institutions in meeting the Financial Action Task Force (FATF) requirements and ensuring compliance with Anti-Money Laundering and Counter Financial Terrorism (AML/CFT) standards. Bakari reiterated the pivotal role of the NFIU as the central national agency responsible for receiving, analysing, and disseminating financial intelligence to competent authorities.

    She underscored the purpose of the engagement which is to gather feedback on enhancing collaboration with various financial agencies, with the objective of removing Nigeria from the grey list and establishing a sustainable and effective AML/CFT framework.

  • NAICOM, NFIU strengthen partnership to combat financial crimes

    NAICOM, NFIU strengthen partnership to combat financial crimes

    The National Insurance Commission (NAICOM) and the Nigerian Financial Intelligence Unit (NFIU) have pledged to collaborate on safeguarding the country’s financial system.

     In a meeting held in Abuja, the heads of both organizations discussed strategies to enhance financial regulations and combat financial crimes.

     NAICOM Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, expressed satisfaction with the existing partnership, highlighting its positive impact on the insurance industry. 

    He commended the joint inspections, training programmes, and awareness campaigns as key factors in improving compliance levels among insurance companies. 

    Omosehin noted the importance of ongoing training and examinations to maintain the integrity of the financial sector.

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    The Commissioner also praised NFIU’s efforts in coordinating compliance with the Financial Action Task Force (FATF) requirements and ensuring adherence to Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) standards.

     NFIU Chief Executive Officer, Hafsat Abubakar Bakari, reiterated the unit’s role as the central authority for receiving, analyzing, and disseminating financial intelligence.

     She emphasized the meeting’s objective as gathering feedback to improve collaboration with financial agencies and ultimately remove Nigeria from the grey list.

     The renewed partnership between NAICOM and NFIU signifies a concerted effort to strengthen Nigeria’s financial regulatory framework and protect the nation’s economy from illicit financial activities.

  • NAICOM orders African Alliance to settle annuity payment, claims

    NAICOM orders African Alliance to settle annuity payment, claims

    The new Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, has given marching orders to the company to resolve and ensure settlement of outstanding claims.

     This complaints by annuitants and insurance claimants against African Alliance Insurance Plc for either delaying or failing to fulfill its obligations.

    The Commissioner summoned the Board of African Alliance Insurance Plc to its headquarters in Abuja where he ordered the company to settle outstanding payments due to annuitants and claimants or face the wrath of the law.

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    In addition, he directed the Board to submit a plan for addressing the challenges faced by the company which necessitated putting the company under the Commission’s Regulatory Order.

    He warned that given the challenges, the company should expect further actions if they fail to address the issues within the stipulated timeline .

    He restated the Commission’s determination to ensure fair treatment of stakeholders, enforce professionalism and good conduct among its licensed operators.