The National Insurance Commission (NAICOM), has urged insurance operators to work towards timely completion of their respective recapitalisation.
The acting Commissioner for Insurance, Mr Sunday Thomas, who stated this at a one-day conference organised for the directors of insurance firms in Lagos, said the commission was impressed by the recapitalisation plans so far submitted by the various firms.
He added that the commission has engaged relevant government agencies and regulatory bodies for possible palliatives that would reduce the cost of recapitalisation.
He said so far, the response the commission got on this has been impressive.
“The recapitalisation exercise is on and the reports submitted by the companies on their recapitalisation plans have been good. I can only encourage sustained efforts for early completion of the plans. “Meanwhile the Commission is engaging other relevant regulatory bodies and agencies of government for possible palliatives that will reduce the cost of recapitalisation and the response is looking good,” Thomas said.
The one-day conference organised by NAICOM for members of board of directors of insurance companies had the theme: “Corporate Governance: The Panacea for Sustainable Growth and Development of Insurance Business in Nigeria”
The commission, told the directors that their position was key in achieving a high level of corporate governance in the industry.
Thomas, noted that the low level of effectiveness of corporate governance oversights in the insurance sector had remained one of the major concerns of NAICOM.
He explained that the failure of corporate governance in the year’s past had played a prominent role in the death or distress of most corporate organisations the world over, Nigeria inclusive.
According to him, over the years, the Commission, has made attempts at entrenching corporate governance culture in the insurance sector.
He added that the development and issuance of corporate governance code in 2009 and the market conduct guidelines in 2014, were among efforts of the commission in this direction.
“Let me state here for emphasis that the primary role of the board either in a private or public entity remains the oversight of management to ensure the corporate goals, vision, mission and values of the entity are strictly upheld at all time.
“The board is also expected to ensure the financial soundness and general well-being of the organisation by monitoring the management, to guarantee effective and efficient deployment of human and capital resources in the overall benefit of all stakeholders,” he said.
He noted that observing the role had been lacking in some companies, which he said had contributed in no small measure to the challenges facing the companies up till today.
He expressed belief that members of the board could effectively perform their roles without necessarily interfering in management functions, adding that the commission desires to work with all stakeholders including members of the board of directors to reverse the trend.
Thomas, also reminded the directors that their companies were in the business of insurance, primarily to settle genuine claims made by policyholders and appealed to them to ensure prompt settlement of claims.