The National Insurance Commission (NAICOM) has said that it will sanction insurance companies that fail to implement the corporate governance guidelines which became effective this month.
Speaking to Vanguard on the sidelines of the 2021 annual seminar for insurance journalists in Lagos, Commissioner for Insurance, Mr. Sunday Thomas said that the absence of sound corporate governance structure in some insurance companies has been the cause of their abysmal performance over the years.
Thomas said: “The corporate governance guidelines that became effective this June will change the way companies are being run in the country. Companies don’t fail on their own, instead people make companies to fail. Companies don’t die, companies are killed and the death of companies involves poor governance structure.
“We are aware that effective from the 1st of June, the corporate governance guidelines have become effective. This is to make sure that whatever resources that are put into the insurance sector are well protected.”
Meanwhile, Thomas said NAICOM Academy will kick off by the end of 3rd quarter or the beginning of 4th quarter 2021.
According to Thomas, one area which the Commission has not gained speed is in the area of the academy.
He said: “NAICOM has acquired a property and work is currently ongoing. We believe that by the end of third quarter or beginning of fourth quarter 2021, the NAICOM Academy will take off.”
According to him, the academy will not only serve the commission’s training needs, but also those of other regulators in the West African sub-region.
According to him the academy will not compete with the College of Insurance which is run by the Chartered Insurance Institute of Nigeria (CIIN) but complement the activities of the institute for the benefits of insurance business and insurance profession.
On distribution channels in the industry, he said the traditional method of distributing insurance is becoming outdated and inadequate to take care of the speed of the people the industry intends to reach.
“We must begin to develop other channels. There are few of them that have been developed and waiting for final touches to be released,” Thomas stated.