Elumelu Vows to Replicate Banking Industry Milestones in Insurance Sector
The Commission for Insurance/ Chief Executive, National Insurance Commission (NAICOM), Mr. Sunday Thomas, has urged newly licensed insurance companies to comply fully with the regulatory guidelines of the Insurance Act 2003 and other relevant rules or risk outright revocation.
This is as Chairman, Heirs Insurance Limited (General), Mr. Tony Elumelu, who was handed an operating license over the weekend, promised to replicate the milestones recorded through the United Bank for Africa (UBA) in the banking sector, to stimulate and deepen insurance penetration going forward.
Thomas, however, charged the chairmen, board of directors and management of the companies to further uphold corporate governance and proper risk management and commit to market development in a positive manner.
Speaking at the award of operating licenses to four insurance companies and one reinsurance company to begin operations in the country, the NAICOM boss, reminded the companies that the license were only held on lease and could be revoke if there are sufficient reasons at any point to do so.
The newly approved insurance firms included Heirs Insurance Limited (General), chaired by Mr. Tony Elumelu and Heirs Life Assurance Limited, which is chaired by Dr. Tajudden Yusuf and FBS Reinsurance Limited led by the former Commissioner of Insurance, Mr. Fola Daniel.
Others are Enterprise Life Assurance Company Nigeria Limited, chaired by Keli Gadzekpo and Stanbic IBTC Insurance Life, chaired by Yinka Sanni.
Thomas described the latest licensing regime as historic, pointing out that the last license an insurance license was awarded by the commission was about 10 years while the last reinsurance license was issued about 35 years ago.
He said: “It is important that
we state this and also to let you know that we are issuing you license today. The license does not belong to you, it is on lease but you will determine how long the lease period will be.
“We will hand it over to you to run your business but I pray that you will not give this commission reasons to want to recall our license.”
The commissioner further said: ”One thing I also want to clear and make known is the fact that companies don’t die, people kill companies.
“And when companies do, the first port of call will be the board of directors before you now come to the management because if they supervise the management, it’s not likely that that company will die.
“Now, your responsibility as a company is to ensure that fit and proper person manage the company. It is also important that you know your limits when it comes to taking on risks.