Determined to closely monitor the activities of the 49 insurance and re-insurance companies in the country, the National Insurance Commission (NAICOM) has set in motion plans to enforce a code of good corporate governance for the operators in the industry.

The Guardian gathered that the measures, which have received industry's market segments' support, are aimed at addressing abuses in the market like failure to comply with relevant insurance laws and regulations, non-settlement of claims and other liabilities, rate-cutting, premium purchase, bribes, commission and inducements, among others.

The Commissioner for Insurance, Mr. Fola Daniel explained that practitioners had no choice but to practice the profession according to laid down rules and regulations in order to restore and heighten the confidence of the insuring public in line with international best practices.
He told The Guardian: "We have fashioned out a new code of good corporate governance document for the industry. We have invited all operators - the Nigerian Insurers Association (NIA), the Nigerian Council of Registered Insurance Brokers (NCRIB), the Institute of Loss Adjusters (ILAN) and insurance companies to make contributions to the document on how modern insurance business should be driven."

According to him, the commission gave the stakeholders up to March ending to send in their inputs, but because of the vital role of the board of directors, the deadline had to be extended to May ending for the boards to make an input into the document, he said.

Said he: "All the inputs we gather would be put together and roll out as a code of corporate governance for the insurance industry. Unless we have in place this kind of document, which is accepted worldwide, then, we would not be recording the respect we deserve as an industry."
The insurance commissioner said that the focus of the commission is to provide a new and enviable pedestal for the insurance industry in Nigeria.

"Our industry now has the highest capitalisation requirement in Africa. It has recently become investors' delight as evidenced by the Nigerian capital market where insurance stocks have consistently ranked the most patronised for upward of six months."

Daniel continued: "The thrust of the commission is not to relax on the present achievements, but to use it as a spring board to launch the insurance industry in Nigeria to enviable heights."

He said that the regulatory authority wants to ensure that we do the right thing by having an insurance sub-sector that lives up to global standards. "We have accredited the companies that are fit to operate in the market and they must ensure proper accounting standards in this sub-sector. We will ensure integrity and accountability within this sector in order to put the insurance industry in the same pedestal with the banking sector."

According to him: "Adherence to good corporate governance by all practitioners in the industry is the main focus of the commission towards turning the industry around. We owe the insurance industry and the nation a lot and we will give our best to achieve the purpose of government to transform the industry to what is obtained in other parts of the word. Also, adherence to the principles of corporate governance was a good way to enhance discipline and market penetration."