The National Insurance Commission (NAICOM) has advised underwriting firms to ensure that premium quotes/rates for government assets are driven by appropriate data to enhance market efficiency.
The commission said this in the Guidelines for Insurance of Government Assets and Liabilities for Ministries, Departments, and Agencies (MDAs) of Government and other stakeholders.
He noted that no insurance operator shall impose, quote, offer, pay or receive any rate, which is not within the range of rates earlier submitted to the commission by the rate filing requirements stipulated in the market conduct guidelines.
The commission also declared that it would be illegal to inflate the premium payable by an MDA in respect of the insurance of the government assets and liabilities in the country.
It called on insurance companies to conduct their relationship with MDAs in line with the provisions of market conduct and business practice guidelines, stressing that it shall be illegal to request, offer, pay or receive any rebates or discount, which is not reorganised by extant insurance laws and regulations.
