Insurance

NAICOM accuses shareholders over wrong choice of directors

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Kari

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has blamed shareholders of insurance companies for showing little concern about the professional competence of directors selected on the boards of most firms.

According to the commission, the wrong choice of directors, had caused setbacks for most firms.

The Commissioner for Insurance, Mohammed Kari, at a forum recently in Abeokuta, Ogun State, noted that the blame for wrong doings by some directors should be placed at the doorsteps of shareholders for not participating in the selection process of directors and having little concern about their professional competence.

“… Be as it may, the blame starts from shareholders who do not get involve in the selection of their Directors or who have little concern about their professional competence. Compounded by the Board of Directors whose basis of selecting the company’s Executive is their blood or village relations or potential loyalty the Executive would confer on the Chairman,” he said.

Kari also lauded the industry operators for making concerted efforts on their own to address these deficiencies.

“It is of joy to hear that the Industry is making concerted efforts on their own to address these deficiencies. The Commission has welcomed these determinations and I can confirmed that arrangements have gone far in the organization of mandatory Directors training to supplement the efforts. The Commission’s arrangement would come with a choice of alternative date to ensure no one has any excuse to skip the training,” he said.

He maintained that while it is not the intention to turn Directors into Insurance professionals, the commission believes the companies would be the better if the Directors, both Executives and Non-Executives collectively understand their responsibility in the running of their companies.

Reacting to the accusation, The General Secretary, Independent Shareholders Association of Nigeria (ISAN) and Managing Director Lancelot Ventures Limited, Adebayo Adeleke, said: “Who approves directors? That is self-indictment. So, NAICOM approves incompetent directors.”

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