As part of the ongoing coordinated effort in repositioning the nation’s insurance industry, NAICOM has declared that any board caught engaging in unscrupulous practices and squabbles would be dissolved forthwith. The National Insurance Commission (NAICOM) has declared zero tolerance for in-fighting and dirty squabbles among board members of insurance companies.
The commission’s new policy was part of the fallout of its recent dissolution of the boards of some insurance companies. According to News Agency of Nigeria (NANS), NAICON, in statement, quoted Mr Fola Daniels, Commissioner for Insurance (CFI), as saying that the commission would henceforth sanction insurance companies infested with board squabbles. Daniels said that NAICOM’s action stemmed from the effects of boards squabbles on the commission’s ongoing coordinated effort in repositioning the nation’s insurance industry.
He said that the unethical and sharp practices in the insurance industry would now become history, as the commission mobilises professionals and resources toward making the sub-sector drive the economy. He also said that the commission had dispatched final warnings to operators on its zero tolerance level in providing a national seamless insurance service delivery. “Specifically, the Commission has vowed to wield the sledge hammer on operators, be it underwriters, insurance brokers, loss adjusters and agents, that failed to comply with the industry’s code of ethics” he said.
According to Daniels, some of the consequences of board infighting are financial reporting failures and ineffective directors. The others are poor operational ethics, lack of professionalism and negligence of policy holders and other stakeholders of the company. He said that insurance companies’ boards caught engaging in unscrupulous practices and squabbles would be dissolved forthwith. The commission recently dissolved the board of International Energy Insurance (IEI) Plc, on May18, 2015, following prolonged board squabbles.
The commission also appointed an interim board, headed by a former Director-General of the National Pension Commission, Muhammad Ahmad; a former Commissioner, Securities and Exchange Commission, Ms Daisy Ekineh and Mr Peter Irene, as Interim Managing Director of the company. Irene also described the commission’s intervention as a step to create neutrality towards ensuring peace and order in the company.