NAICOM Threatens to Sack Boards of Weak Insurance Firms

Ebere Nwoji

Weak insurance firms in the country may soon lose their position in the market as the National Insurance Commission (NAICOM), has vowed to replicate its recent action in African Alliance Insurance in firms showing signs of weakness and unable to meet their claims and  other obligations.

NAICOM has last week sacked the board and management of Africa Alliance Insurance and appointed an interim board and management to henceforth oversee the affairs of the company.

The commission said with what happened in African Alliance and the long period of grace  it gave to the company to adjust and the company’s poor attitude of dribbling the regulator, an operational line has been drawn for insurance companies in the country.

The Deputy Commissioner  for insurance Technical, Dr. Usman Jankara, said this at a  recent press briefing  in Lagos, stating that the regulatory action taken against African Alliance Insurance Plc has set in motion the operational line.

He warned that henceforth any company that crosses the line would be greeted with appropriate regulatory action.

Also speaking, the Commissioner for Insurance  Ayo Olusegun Omosehin, echoing his Deputy Commissioner Technical, said the Commission would ensure that all directors whose position were taken over through regulatory intervention, would be registered in NAICOM’s Black Book.

Omosehin maintained that such individuals would never be allowed as directors nor hold any executive position in the insurance industry, stressing that they can go and start a new life in sectors where they are accepted, but not within the industry.