The Commissioner for Insurance, Mr Fola Daniel has urged the new Nigeria Insurers Associations (NIA) chairman to come up with a new market agreement that will curb market infractions being perpetrated by insurance companies.
The Commissioner in his remarks at the investiture of GUS Wiggle as the 21st chairman of the association, urged NIA to among other things to set up new rules that will be approved by its member companies such that they will ensure compliance.
“Nevertheless, I want to trust that you will advance on the NIA objectives and produce a new market agreement that will be signed by all the Insurance Companies on the basis of mutual self- regulation.
This long outstanding promises of the Council should be your first practical task as you strategize on other concerns”, he said.
He regretted that operators in the sector were fond of complaining of being over regulated while international agencies such as International Association of Insurance Supervisors (IAIS), the
Financial Stability Board (FSB), the International Monetary Fund (IMF), KPMG and Standard & Poors’ among others grouped the sector among under regulated ones adding that most insurance companies complained on each initiative/ regulation introduced by the commission but noted that these regulations have rebound and curb infractions in the sector of which these companies benefited in.
“The introduction of International Financial Reporting Standard (IFRS), the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime, the No Premium, No Cover, the requirement for offshore remittance, etc., has benefitted all of your members today, significantly
curbing market abuses”.
Daniel stated that going forward NAICOM will ensure strict compliance to insurance traditions by companies adding that the commission will never relent making available right environment for ethical behavior even as it will continue to conform to international standard.
“Let me state with emphasis that we will be very firm in enforcing compliance with laid down rules and regulations in order to instill discipline in the sector. It is high time we all stepped up our game
and learn to play by the rules. It is only by so doing that we can achieve real growth and development in the industry and make meaningful contribution to the economy.
“The Commission will continue to create the right environment for ethical behaviour and conversely, where we identify actions detrimental to the interest of the industry; we shall take corrective steps as part of our mandate.