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Insurers celebrate contributions of NAICOM boss to industry

By Joshua Nse
12 July 2015   |   11:14 pm
THE nation’s insurance industry are expected to come together as one united body at the 2015 mega conference from July, 26 to 28, a maiden edition put together by Insurance Industry Consultative Council (IICC) in Abuja. The IICC is chaired by the President of the Chartered Insurance Institute of Nigeria (CIIN), Bola Temowo, and has…
NAICOM

NAICOM’s Commissioner for Insurance, Fola Daniel

THE nation’s insurance industry are expected to come together as one united body at the 2015 mega conference from July, 26 to 28, a maiden edition put together by Insurance Industry Consultative Council (IICC) in Abuja.

The IICC is chaired by the President of the Chartered Insurance Institute of Nigeria (CIIN), Bola Temowo, and has members drawn from all sub-sectors of the industry, namely CIIN; Nigerian Insurers Association (NIA); Nigerian Council of Registered Insurance Brokers (NCRIB) and Institute of Loss Adjusters of Nigeria (ILAN).

One of the highlights of the conference is the celebration of the Commissioner for Insurance, Fola Daniel, the award night the industry has packaged in his honour for the contributions made during his tenure as chief executive of the National Insurance Commission (NAICOM) for the past eight years.

The honour to the NAICOM boss is significant because since his assumption of office, he has championed the important role of insurance in the nation’s economy.

To him the insurance sector is a critical part of any nation’s economy and has the potential of galvanizing the optimal performance of other sectors. The insurance mechanism reduce the capital needed by firms to operate, increase investments, fosters entrepreneurship by reducing uncertainty and expand available risk management options. It also offers social protection, alongside the state, and reduce pressure on public sector finance.

The celebration of Fola Daniel, a tested professional, is remarkable taking into consideration some landmark achievements he has made. On his appointment, he was saddled with the unenviable responsibility of reforming NAICOM, the entire insurance industry as well as steer the industry out of crisis. He has successfully executed these tasks to the admiration of all stakeholders.

For instance, within two months of his appointment as Commissioner for Insurance, the stalemated recapitalization and consolidation exercise in the insurance sector was brought to a successful conclusion; resolution of disputes with trade arms of the industry through dialogue between the commission and the trade associations, project e-regulation – an initiative to migrate from current manual supervision to IT-driven supervision.

Also Market Development and Restructuring Initiative (MDRI), with objectives of building confidence in the Nigeria insurance market, promote public understanding of insurance mechanism, grow the nation’s insurance premium volume and density, eliminate fake insurance certificates. The programme aimed at enforcing compulsory insurance in the country; wipe out of fake insurance agents/certificates; reformation of the agency system and, risk-based supervision; the implementation of the MDRI has helped to increase awareness and enhance access to affordable insurance products; reduce insurance gap and, boost the insurance industry’s contribution to GDP.

Others include improve regulatory oversight; release of guidelines on annuity business; operational guidelines for insurance institutions, guidelines for oil and gas insurance business in Nigeria; circular on Financial Reporting Practice by operators; guidelines on anti-money laundering-combating the Financing of terrorism for insurance institutions; code of corporate governance for the industry; among others.

The President of CIIN, Bola Temowo, and chairman of IICC said, what the Commissioner for Insurance, Fola Daniel, has done for the industry and his achievements is worthy of our appreciation and that is why we are honouring him with an award during the conference.

The Managing Director, RiskGuard-Africa (Nigeria) Limited, Yemi Soladoye, in his remark commended the National Insurance Commission and the able leadership of Fola Daniel, for the reforms he has introduced to bring sanity, professionalism into the operation of insurance business in this country.

According to him, the biggest achievement of the commission is that the Nigeria insurance industry now have a united focus. Hitherto, it was the operators that were leading the regulators, but the regulators have now enforced the Insurance Act 2003 effectively to the advantage of the market. For instance, he said, the “No premium no cover” rule which nobody thought could happen, came and the practitioners are now taking advantage of the rule, the compulsory insurances and other related issues are being effectively enforced in the industry, although there are challenges in the market, but it is a good sign that the future of insurance in this country is bright.

Also, the Managing Director, Leadway Assurance Company Limited, Oye Hassan-Odukale, in his comment said NAICOM in the past three years has insisted on doing business in the market according to the rule, obviously it has been challenging but to the advantage of the industry. The IFRS must be 100 per cent compliant, all these are challenges in the industry, but to the overall best interest of the industry.

The Chairman of the Nigerian Insurers Association (NIA), GUS Wiggle, in his comment said the association made input into the various guidelines and circulars released by NAICOM to enhance greater market discipline, promote ethical conduct and position the market to cope with the changing dynamics of business and in line with global best practices.

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