The National Insurance Commission (NAICOM) has warned that to strengthen Nigeria’s insurance industry, it may sanction more insurance companies through liquidation.
This was disclosed by the Deputy Commissioner, Technical, NAICOM, Mr Sabiu Abubakar, at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar in Lagos recently.
He stressed that liquidation is needed to sanitise the industry, according to the News Agency of Nigeria.
He said, “Recently two insurance companies’ licences have been withdrawn and these are: Niger Insurance and Standard Alliance Insurance.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.”
He added that NAICOM had strengthened its regulatory oversight to ensure that operators discharge their obligation by settling genuine claims timely, citing that insurance regulation and supervision were always 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,” Abubakar added, urging insurance practitioners to comply with and support the commission’s efforts.
Recall that the NAICOM has announced the cancellation of the Certificates of Registration of Niger Insurance Plc and Standard Alliance Insurance Plc.
The statement from NAICOM read, “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.
“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.”