By Ginika Okoye/Rukayat Adeyemi
Lagos, June 5, 2021 The National Insurance Commission (NAICOM) says poor governance structure was a major factor for the failure of most insurance companies.
Mr Sunday Thomas, the Commissioner for Insurance (CFI) and Chief Executive of NAICOM, said this at the closing ceremony of the annual seminar for insurance journalists in Lagos on Saturday.
Thomas noted that corporate governance guidelines which would ensure that whatever resources that were put into the insurance sector were well protected, had become effective.
He noted that the Commission would not take measures against the management of any failed insurance company.
Thomas said that the first set of the risk based supervision would take off latest in August in the country, adding that relevant persons had been trained by the Commission to commence the exercise.
“The traditional method of distributing insurance is becoming out-dated, inadequate to take care of the speed we want to make and the people we want to reach. So, we must begin to develop other channels.
“There are few that have been developed but awaiting final touches for them to be released.
“Companies do not fail on their own, people make companies to fail, companies do not die, companies are killed.
“The death of companies evolve from poor governance structure most of the times and effective from June 1, the corporate guideline has become effective,’’ he explained.
The commissioner noted that NAICOM was committed to getting the concurrence of the Minister of Finance for a guideline that would make it mandatory for all Federal Government firms to make adequate provision for their insurances.
According to him, it is a public knowledge that about N9.2 billion has been set aside for the 2021-2022 financial year for group life insurance of federal government agencies.
He said the Commission would also engage the states to draw them closer and bring the benefits and consciousness of insurance to their doorsteps.