The National Insurance Commission (NAICOM) is set to begin the implementation of insurance industry’s code of corporate governance by April 2016.
The Chairman Sub-Committee Publicity and Communications of the Insurers Committee, Oye-Hassan Odukale, who is also the Managing Director Leadway Assurance Limited, disclosed this recently after the meeting of the committee in Lagos, stressing that operators are given up to the end of March 2016 to comply with the 2009 code.
According to him, operators and the commission also agreed to transit to risk based supervision that would enable operators shore-up their capital in line with the businesses they want to underwrite.
Odukale further reiterated that NAICOM had educated them on risk-based supervision, which is where we are transiting to. With risk based supervision, there would not be common capital base for insurance companies again, companies have to determine their capital in line with the business they do.
“The board of insurance companies would have the responsibility of determining the risk capital for their companies which would be supported by the appropriate capital.
The Deputy Commissioner Finance and Administration George Onekhena, commented that the parties had resolved to have representatives from insurers and NAICOM to look into some issues and challenges that insurers have with the commission and fashion ways to solve them.