NAICOM sets June 1 for execution of new corporate governance guidelines
The National Insurance Commission (NAICOM) has announced that the implementation of the insurance industry’s corporate governance guidelines will commence on June 1, 2021.
The Commission made this known in a publication on its website disclosing that, the guidelines was issued on March 17, 2021, and implored all insurance and reinsurance firms to comply with the guidelines and the Nigerian Code of Corporate Governance 2018.
According to NAICOM, non-compliance with the Nigerian Code of Corporate Governance (NCCG) 2018 and these guidelines shall be a violation of Section 49(1)b of the National Insurance Commission Act 1997 and attracts penalty under Section 49(5) of the Act.
Furthermore, NAICOM noted that its principal objective was to ensure effective administration, supervision, regulation and control of the insurance business in Nigeria, adding that Section 11 C and 51 C of the Financial Reporting Council of Nigeria (FRCN) Act, 2011 confers on the FRCN the power to ensure good corporate governance practices in public and private sectors of the Nigerian economy.
The Commission stated that the FRCN issued the Nigerian Code of Corporate Governance (NCCG) 2018 to institutionalize corporate governance best practices in all Companies in Nigeria and repealed all other sectorial codes.
Therefore, the NAICOM in exercise of its powers under the National Insurance Commission Act 1997 and in collaboration with FRCN hereby issues its corporate governance guidelines to assist the implementation of the NCCG 2018,
The guidelines according to NAICOM shall be read and interpreted in conjunction with the provision of NCCG 2018 and replaces the NAICOM Code of Good Corporate Governance for the Insurance Industry 2009; and all insurance and reinsurance companies are to comply with it and the Nigerian Code of Corporate Governance 2018.
Meanwhile, NAICOM has assured stakeholders that it will continue to introduce new reforms and initiatives in line with international best practices that will fortify insurance institutions in the country. The Commissioner of Insurance, Sunday Thomas, stated this at the official commissioning of ‘NAICOM Hall’, a 1,500-capacity auditorium of the College of Insurance and Financial Management (CIFM), said the Commission is open to ideas.
Thomas noted that human capital development anchored on relevant upscale of skills, digitalisation and product innovations, effective and efficient service delivery remain the strategic focus of the Commission under the current dispensation.
“On this premise, several initiatives have been designed by the Commission to facilitate attainment of the strategic focus which will redefine the future of the Nigerian insurance market,” Thomas said.
To this end, the Commission has already commenced the Actuarial Capacity Development Programme in collaboration with the CIFM, and the programme is expected to develop 100 certified actuarial analysts and a minimum of five actuaries in Nigeria by the year 2024. This is an important component of the Commission’s strategic focus on capacity development, he said.