NAICOM renews consultations over insurance sector recapitalisation
The Acting Commissioner for Insurance, Sunday Thomas, gave the hint at the Conference for Directors of Insurance Companies, with the theme: “Corporate Governance: The Panacea for Sustainable Growth and Development of Insurance Business in Nigeria,” co-organised with the College of Insurance and Financial Management (CIFM) in Lagos.
He stated that the recapitalisation exercise is ongoing and the reports submitted by the companies on their recapitalisation plans have been good, while the commission is collating the reports to reply to the companies soon.
Thomas noted that the position of the boards is key in achieving a high level of efficiency in an institution’s corporate governance structure, adding that the low level of governance in the insurance sector remains one of the major regulatory concern.
“This is for the simple fact that the failure of corporate governance in the years past have played a prominent role in the death or distress of most organisations the world over, Nigeria inclusive.
“Over the years, the commission has made attempts at entrenching good corporate governance culture in the insurance sector. The development and issuance of Corporate Governance Code in 2009 and the Market Conduct Guidelines in 2014 are among efforts of the commission in this direction,” he said.
According to him, the primary role of the board either in a private or public entity remains the oversight of management to ensure the corporate goals, vision, mission, and values of the entity are strictly upheld at all times.
He maintained that members of the board can effectively perform their roles without necessarily interfering in management functions, which is the desire of the commission to work with all stakeholders to reverse the anomalies.
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