The newly installed National Insurance Commission (NAICOM) board is calling on the federal government to help it fundamentally overhaul the insurance market, including the abolition of underperforming firms.

During the courtesy visit by board members to Minister of Finance, Budget and National Planning, Zainab Ahmed on Monday, Dr. Abubakar Sani, Chairman of the Board of NAICOM, said .

Dr. Sani explicitly informed the minister of the council’s intention to carry out particular operations aimed at purging the national insurance market, reiterating that the sector’s code of ethics is now applied.

“We will enforce the code of business ethics among insurance entities and strengthen their corporate governance, which the board says will clean up the market.”

The NAICOM Board of Directors will in due course return to the issue of the recapitalization of the insurance industry and clean up its act with the application of the code of ethics of the insurance profession and practice and of the code of good corporate governance.

The board is working to clean up the market and will weed out companies that don’t live up to expectations,” he said.

In her address, Zainab Ahmed, Minister of Finance, Budget and National Planning instructed the Board and management of NAICOM to develop and put into practice policies that will strengthen the insurance industry and reposition it to increase its contribution to the country’s GDP. Product (GDP) and the economy as a whole.

However, she advised members to scrupulously respect the policies, directives and circulars in force which govern the activity of the boards of directors of federal agencies, commissions and parastatals.
“The initiative to make this visit just two months after your inauguration demonstrates your determination and desire to work closely with the ministry to achieve the mandates of NAICOM.

“During your inauguration, I brought to your attention certain matters of interest and concern in the insurance industry which require your urgent attention.

This visit therefore gives me once again the opportunity to congratulate you on your inauguration and to inform you that the government expects a great deal from this council.

You must build on the successes of the council of elders. “In this regard, I wish to reaffirm some of these issues and remind you of your role as Chairman and members of the Board of Directors of NAICOM.

“The board, which also includes management, should develop and implement policies that will strengthen the insurance sector and reposition the industry to improve its contribution to the country’s GDP and the economy in general.

“It is of the utmost importance that the new Board of Directors and the management of the National Insurance Commission work in harmony in order to update the Commission’s mandate.”

“The board should develop strategies to systematically build member capacity through workshops, seminars, study tours, etc. in order to enable an effective contribution to the growth of the industry, especially since some members are not from the insurance sector.

“Members should note that there are guidelines, regulations and circulars which guide the operation and conduct of the Boards of Directors of federal parastatals, agencies and commissions and must be strictly adhered to – Frequency of Meetings ; board member rights, travel guidelines and related matters.

“Deepen insurance penetration in the country: It would be necessary to achieve greater insurance penetration in the country.” In this regard, it is necessary to develop new products and insurance policies.

“Board and management should ensure that conditions of service and staff welfare create an atmosphere conducive to promoting staff productivity and social peace.”

Finally, members should commit to developing and implementing policies that would promote the reputation of the industry through the prompt payment of claims.

Your goal should be to take the industry to greater and enviable heights during your tenure.

“In conclusion, I wish to reiterate the department’s commitment to continue to assist and support the commission in carrying out its mandate for the overall benefit of the nation,” the minister said.