The National Insurance Commission (NAICOM) has said that more insurance companies may be sanctioned through liquidation as part of its moves to reposition the industry.
The Deputy Commissioner, Technical, NAICOM, Mr. Sabiu Abubakar, made this known at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar in Lagos on Thursday.
The theme of the seminar was: “Economic Policies of the Government in 2022: Challenges, Issues and Prospects’’.
“Recently two insurance companies’ licences have been withdrawn and these are: Niger Insurance and Standard Alliance Insurance.
“Though managing the death or failure of financial institution is very demanding, nevertheless more may still be liquidated in order to sanitise the insurance sector,” he said.
Abubakar noted that NAICOM had strengthened its regulatory oversight to ensure that operators discharge their obligation by settling genuine claims timely.
The deputy commissioner said that insurance regulation and supervision were always the bedrock of national economic development.
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He noted that NAICOM’s reforms and regulatory initiatives would positively impact the insurance industry and the industry would witness tremendous development and growth.
Meanwhile, NAICOM said it would soon release guidelines on insurance of government assets to ensure appropriate and adequate insurance cover for government assets.
Abubakar said that the guidelines, to be released soon, would ensure that assets of Ministries, Departments and Agencies (MDAs) would be fully covered.
He explained that the commission had collaborated with Ministry of Finance, Secretary to the Government of the Federation and Head of Service to come up with the guidelines.
He said that the guidelines would ensure that all MDAs comply with the requirements in the guidelines, while failure to comply would attract sanction.
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“It is very worrisome to the commission that most assets and liabilities of government are never adequately and appropriately insured.
“This further accentuate the need for urgent measures to be put in place to ensure that government gets value for money in the purchase of insurance by MDAs,” he said.
In his address, CIIN’s President, Mr. Edwin Igbiti, said that the seminar was organised for key players in the insurance industry and other finance sub-sector to review the business environment in the country.
Igbiti said that the review was for the performance of the industry in the immediate past year and way forward for the new year.
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