More insurance firms to be weeded out to sanitise sector
By Jeph Ajobaju, Chief Copy Editor
More insurance companies are in for the hammer besides Niger Insurance and Standard Alliance Insurance whose licences were revoked in June by the National Insurance Commission (NAICOM).
NAICOM Deputy Commissioner (Technical) Sabiu Abubakar said closing down more insurance firms will both sanitise and strengthen the industry, which has a reputation for failing to pay claims after collecting premiums.
“Recently two insurance companies’ licences have been withdrawn and these are: Niger Insurance and Standard Alliance Insurance.
“Though managing the death or failure of financial institutions is very demanding, nevertheless more may still be liquidated in order to sanitise the insurance sector,” Abubakar warned at the Chartered Insurance Institute of Nigeria (CIIN) Second Edition of 2022 Business Outlook Seminar in Lagos.
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Regulatory oversight
NAICOM has strengthened its regulatory oversight to ensure operators discharge their obligation by settling genuine claims timely, Abubakar added, saying insurance regulation and supervision are the bedrock of national economic development.
“NAICOM’s reforms and regulatory initiatives would positively impact the insurance industry and the industry would witness tremendous development and growth,” he enthused, according to the News Agency of Nigeria (NAN), as reported by Nairametrics.
He urged insurance practitioners to comply with regulations and support the efforts of NAICOM at improving the industry.
NAICOM revokes licences of Niger Insurance, Standard Alliance
NAICOM in June revoked the Certificates of Registration of Niger Insurance and Standard Alliance Insurance.
“This is to notify all insurance stakeholders and members of the public that the National Insurance Commission has cancelled the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029 with effect from the 21st day of June 2022,” NAICOM announced in a statement.
“Consequently, the commission has appointed Sanya, Ogunkuade Esq of Plot 217, Upper Grace Plaza, 3rd Floor (Left Wing), Shetima Munguno Crescent, Behind Julius Berger Equipment Yard, Utako, Abuja as the Receiver/Liquidator for Niger Insurance Plc and, Kehinde Aina Esq of Aina Blankson LP, 5/7, Ademola Street, SW Ikoyi, Lagos as the receiver/liquidator for Standard Alliance Insurance Plc.
“All stakeholders are advised to forward their enquiries to the respective Receiver/Liquidator for each company for their necessary action.
“The Commission assures all stakeholders of the safety and protection of their interests.”