Operators in the insurance industry have endorsed the appointment of Mr. Fola Daniel by the Federal Government as the new Commissioner for Insurance. Industry practitioners who spoke to The Guardian on the appointment of the insurance technocrat, lauded the decision, believing that government will give him the support to enable him succeed as the chief insurance industry regulator.

The government last week announced the appointment of Daniel, the former managing director CEO, Globe Reinsurance Plc as the new boss of the National Insurance Commissioner (NAICOM), and he is expected to resume duty on August 1, 2007.

The managing director and chief executive officer, International Energy Insurance Plc, Mr. Jacob Erhabor told The Guardian that the appointment is a welcome development that the industry has been looking for to manage the changing dynamics of the reforms in the insurance market.
He said: "Mr. Daniel is a tested professional who understands the challenges in the industry and has the intellectual capacity to move things around. But my worry is that it is one thing to make the appointment but another thing to be given the necessary support to perform. I therefore think that the government that has appointed him should support him by giving him free hand to put his vision into the improvement of conduct and regulation of insurance practice in this country. I wish him all the best in his new assignment."

Similarly, the Managing Director/Chief Executive, Niger Insurance Plc, Mr. Justus Uranta, in reaction said: "He is an experienced and brilliant person who understands the market and the challenges arising from the recent consolidation exercise in the industry. I hope that during his tenure the insurance industry will notice improvement in terms of regulation and practice in view of enormous expectations from stakeholders in the new insurance environment, position the industry to fly in the international arena beyond the local market, restore the confidence of prospective investors in order to move the industry forward."

The chairman, Nigerian insurers Association (NIA) Mr. Ibidolapo Balogun said the appointment is a welcome development that will move the industry forward.
He said: "In order to move the insurance industry forward, this is the time to strengthen our support for the commission for the good of the industry and to fulfill our collective desire to take the insurance industry to its well deserved position in the near future."

According to the NIA chairman, "this calls for continued support of government to the National Insurance Commission and to the industry at large especially with increased capital insurance companies are now better positioned to play more active role in the Nigerian content scheme especially in oil and gas underwriting, cabotage regime and aviation insurance. With increased retention capacity, local insurance companies can now grow premium income and by extension become more profitable.

Industry sources, however, told The Guardian: "For new commissioner for Insurance to be effective in the performance of his new role as a regulator of the insurance business, NAICOM must embrace robust regulatory practice from the present structure of insurance regulations where the commissioner has to obtained approval for every decision it has to take from the Federal Ministry of Finance. Besides, the image of the industry is not helped by the high turnover of chief executive officers of the commission because of the selfish and unco-operative attitude of the officers of the regulatory agency. This is the area the new NAICOM boss may want to look closely into because these same elements in the commission may be at work to pull him down," he said.

The National Insurance Commission (NAICOM), which is the apex regulatory body for the insurance industry in Nigeria, is backed by an enabling Act 1 and 2 of 1997 and the Insurance Act of 2003. It was set up among other things to promote discipline and standards that stimulate long-term viability of Nigerians insurance industry, positioning it for global competition. NAICOM also was the responsibility of improving and deepening insurance penetration and density in the country and enthrone professionalism through continuous sanitisation of the industry.