No license for new composite insurance – NAICOM Boss
The Commissioner for Insurance, National Insurance Commission (NAICOM), Alhaji Muhammed Kari has advised existing insurance firms doing business under other classes of insurance (either as life or general) seeking to obtain license to go into composite business to forget about that for now, saying the Commission will not issue any license to anybody for this purpose.
Kari made the disclosure while addressing insurance brokers during the last edition of the Members’ Evening of the Nigerian Council of Registered Insurance Brokers (NCRIB) in Lagos recently.
NAICOM Boss who said that issuing a new license for composite business at this time the industry is transiting from compliance based to risk-based supervision was a misnomer.
He said at this point in time where the industry is evolving; there was need for consolidation for capital adequacy and strong solvency margin for a strong and solid insurance industry adding that it is time insurance companies should insure risk they can carry in accordance with their capacity.
Kari who advocated for consolidation and synergy amongst insurance companies and other intermediaries, expressed worries that some insurance companies cannot pay staff salaries.
He said the Commission will continue to carry out its statutory responsibility of regulating the insurance activities in Nigeria, to ensure the protecting of policyholders, adding that when the road map framework on insurance operation in Nigeria being worked out by the Commission in collaboration with the Federal Ministry of Finance and the Nigerian Insurers Association (NIA) is concluded, NAICOM will come out a guideline on how the consolidation will be done.
Kari who condemned the act whereby some Insurance Brokers sell or surrender their licenses to those who are not insurance professional to bid for insurance business, describing it as a breach of professional ethic and called on Brokers to be proud of their profession and be ready to defend it with their blood.
NAICOM Boss who also encouraged Brokers to for synergy amongst themselves, informed them that the Commission is working on a guideline on how Brokers can register to form partnership.
He called on Brokers to always apply for the renewal of their licenses on time instead of waiting for it to lapse before starting the process of renewal if they must escape from being penalized or sanctioned.
Kari charged Brokers to always interface with the Commission whenever there are reasons of doubt instead of believing in rumours even as he warned those who peddled rumours and falsehood to desist from doing so.
He equally reminded the Brokers that penalties and sanctions are “to make us wake up to our responsibilities but not to witch-hunt anybody or company.
