Chairman, Nigerian Insurers Association, Tope Smart at the event.
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Chuks Udo Okonta
The National Insurance Commission (NAICOM) said it is engaging other relevant regulatory bodies and agencies of government for possible palliatives that will reduce the cost of recapitalisation.
The Acting Commissioner for Insurance, Sunday Thomas, disclosed this today at the Conference for Directors of Insurance Companies, with the theme: Corporate Governance: The Panacea for Sustainable Growth and Development of Insurance Business in Nigeria” co-organised by the Commission and the College of Insurance and Financial Management (CIFM) in Lagos, adding that the response received so far is looking good.
He posited that the recapitalisation exercise is on and the reports submitted by the companies on their recapitalisation plans has been good, stressing that the commission is collating the reports and will soon begin to reply the companies.
Thomas noted that the position of the Board of Directors is key in achieving a high level of efficiency in an institution corporate governance structure, adding that the low level of effectiveness of corporate governance oversights in the insurance sector remains one of the major regulatory concern to the Commission.
“This is for the simple fact that the failure of corporate governance in the year’s past, have played a prominent role in the death or distress of most corporate organizations the world over, Nigeria inclusive.
“Over the years, the Commission has made attempts at entrenching good corporate governance culture in the insurance sector. The development and issuance of Corporate Governance Code in 2009 and the Market conduct guidelines in 2014 are among efforts of the Commission in this direction.
“Let me state here for emphasis that the primary role of the Board either in a private or public entity remains the oversight of management to ensure the corporate goals, vision, mission and values of the entity are strictly upheld at all time,” he said.
He noted that the board is also expected to ensure the financial soundness and general wellbeing of the organisation by monitoring the management, to guarantee effective and efficient deployment of human and capital resources in the overall benefit of all stakeholders, adding that the observance of this role has been lacking in some of our companies and which has contributed in no small measure to the challenges facing these companies today.
He maintained that members of the board can effectively perform their roles without necessarily interfering in management functions and that is the desire of the Commission to work with all stakeholders including members of the board of directors to reverse this trend.
