The National Insurance Commission (NAICOM) is seeking the support of the Federal Government to tackle the menace of fake insurance policies in Nigeria.
This comes as plans are underway to review the recapitalisation of insurance companies in the country.
The chairman of the NAICOM board, Dr Abubakar Sani, who disclosed this in Abuja while paying an official courtesy call on the Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, added that the body will also enforce the code of ethics of the insurance industry.
His words: “The NAICOM Board will in due course revisit the matter of recapitalization of the insurance industry and will clean up its act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies. The board is working to sanitize the market, and will be taking out companies that are not majoring up to expectations.”
The board solicited the support of the Minister to eradicate the menace of fake insurance policies in the country, saying, “we will need your support to exterminate the menace of fake insurance policies in the country, which deny huge revenue to the insurance entities and taxes to the government. In our action plan, we will solicit the cooperation of your ministry to institute an insurance task force that would enforce compulsory insurance in the country.”
He explained that the task force that will be deployed, should be made of the Police, Vehicle Inspection Officers (VIO) and Nigerians. Civil Defense.
Dr Sani said the board will install the mechanism to review all the actuarial valuations submitted to the commission for assessment and consideration.
To enhance the performance of the regulatory body, he said its strategic plan will be reviewed to align with the objectives of the commission as contained in the matching order and directives.
The Board is looking at creating an enabling environment for the insurance industry to beef up its capital through mergers and acquisitions, and invitation of fresh capital from local and international investors.
He hinted that an investors Forum is being planned where insurance companies that need capital will interact with potential investors and also an avenue where insurance companies will come together to showcase themselves where there will be due diligence to enable potential investors to know their financial status.
He asked for the support of the Minister to search for investors that would make the Nigerian insurance industry robust to effectively strengthen the entities to play their roles in making other businesses thrive in the country.
“The NAICOM will organize an insurance investment forum in Nigeria and abroad with the sole aim of wooing potential investors to take advantage of the potential.”
In her remarks, the Minister asked both the board and the management to work assiduously to deepen insurance in the country by ensuring prompt settlement of insurance claims.
“In this regard, there is a need to evolve new insurance products and policies. Board members should commit to developing and implementing policies that would promote the reputation of the Industry through prompt payment of claims. Your target should be to take the Industry to greater and enviable heights during your tenure,” she stated.
