Kari
KEYNOTE ADDRESS BY THE COMMISSIONER FOR INSURANCE, MOHAMMED KARI AT THE 2016 INSURANCE PROFESSIONALS FORUM OF THE CIIN HELD AT PARK INN HOTEL, BY RADISSON ABEOKUTA, OGUN STATE ON THURSDAY, 1ST SEPTEMBER, 2016.
Protocol,
It is always a pleasure to be in the midst of my professional colleagues especially when I have to say a word or two. The professional forum has come a long way since it started and I must extend my congratulation to the Council and members of the Chartered Insurance Institute of Nigeria, (CIIN) for their continued determination at keeping the fire burning.
I believe this forum offers every participant in this hall the opportunity of interaction and exchange of ideas to keep track of developments within and outside the Nigerian Insurance Industry. I would have wished issues of the Individual professional and the profession always get the front burner in the CIIN’s outings. The market associations have always done great in dealing with the macro issues as expected.
The professional is more often than not left unguided on developments and trends in his or her line of carrier. Remember, professionals attend this conferences for self-developmental purposes for which MCPE points are earned. Where is the development if macro issues occupy all our discussions?
This observation is not ignoring the efforts of the Institute in ensuring an “educated” entry level into the profession. The requirement for some minimum entry certification for professionals has definitely raised the bar, however what happens there after must be given the appropriate importance it deserves.
One wonders how long the subjects of trust, professionalism and service last in our hearts after passing the examination. Correlations can be drawn between our profession and driving vocation. The driver is taught how not only to manage and control the vehicle to ensure he reaches his destination safely but principally to reach his destination without injuring, killing or damaging the property of others. The part of our professional training that teaches of the duties to our clients, ensuring that we give the best professional service and safeguarding the client’s rights, must be amplified not only at the initial training for the licenses but also at frequent intervals for the duration of our professional career. The Institute should seriously consider some regular re-training and re-education of its membership at suitable intervals to ensure they stay abreast of modern developments. This could be made mandatory for the renewal of membership. With the tenacity of the our College’s Rector, I believe that can easily be achieved
While it is easy to blame the self-employed professional for his recklessness and excesses, employers have to take the blame for that of their employees. The individual’s excesses would have to be curbed by the institute directly by the enforcement of its codes and bylaws that already exist and by making them tougher where necessary.
The employed professional can likewise be checked by holding his employer responsible for his action. The institute’s codes and our regulatory guidelines already provides for most of that. I am calling on the institute to bite the bullet and work with us to rid the profession of the remaining bad eggs where ever and whoever they may be.
The case of the bad professional who is at the top is more complex. (OATT). We have found Executive recklessness and/or timidity at the very top of the executive ladder in some companies. Executives that have feign ignorance when asked to give account of their companies’ misconducts. While some have blamed the Chairman or Directors, some have simple claimed unawareness. Directors including Executives, seem oblivious of the fact that their action can lead to criminal prosecution.
It is true that there had been Chairman that were overbearing, but any professional on the seat of a company’s Executives, should know the expectations on him are onerous. The insurance professional’s role in Board oversight responsibilities is to bring in his professional competence and ethical orientation into play in Board deliberations. In this regard he is expected to provide explanations and clarifications on issues when necessary in the course of the Board’s work. This is more so on technical insurance issues. He is also expected to bring the professional orientation of integrity and objectivity in his contribution in Board’s decision making. The insurance professional should use his membership of the Board to raise the quality of discussion in Board meetings and, over time, assist other Directors in developing improved perspective on insurance and ethical issues.
As a member of Executive management, he should ensure the information contained in Board papers are accurate and complete in terms of what the Board should know about the insurance entity and reasonableness of explanations offered for any matter being presented to the Board for special attention or deliberation. We find the reverse situation where in absolving themselves, the Directors blame management for corporate misconduct. It is not uncommon to hear some Directors complain that the information or explanation given to them by NAICOM during intervention-related meetings were never given to them by management.
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.
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. While it is not the intention to turn Directors into Insurance professionals, we believe the companies would be the better if the Directors, both Executives and Non-Executives collectively understand their responsibility in the running of their companies.
In line with my recent clarification of some corporate governance issues during the investiture of the new Chairman of the Nigerian Insurers’ Association (NIA), a well-timed circular was released as a follow-up to document the resolutions. The code of good Corporate Governance plays an important role in the success of any institution. We have observed a correlation between technically and financially deficient Insurance companies with corporate governance problems. We see this as negligence on the part of the Board either in performing its oversight functions and/or the Board itself actively involved in unprofessional practices.
The effective performance of the Corporate Governance Code and market conduct practice are for the benefit of all and it makes the management of the professional resource easier for the company and it also ensure stability in the market. Regulators despise instability, however stability does not necessarily mean maintaining status quo.
The Commission, like all concerned, recognizes the need to increase the penetration of insurance services in Nigeria through the creation of alternative distribution channels and has gone far on the preliminary work and draft guidelines in this direction. We acknowledge the market and the players could meet challenges as we seek to establish these channels, we however believe that in the new spirit of consultation, we shall scale those hurdles. This preliminary works being done includes the review of existing intermediation structures, this would also enhance partnership with other sectors of the economy.
On a final note Ladies and gentlemen, the time has indeed come for us to speak professionally and act like the true insurance professionals we claim to be in the course of performing or conducting our business. Our failure to observe this tenet in the past has caused the industry so much reputational injury. I am glad to say the current efforts of the Insurance Underwriters’ to change the perception of the public about insurance is timely and laudable. All other sectors should join in with their widow’s might to ensure the success of the project.
It was at one of the meetings discussing the re-branding project that a Chief Executive emphasized everybody’s silent concern. She said until we the operators re-brand our attitudes, no media campaign can succeed. I want to challenge the Institute to urgently study the ways and means of re-branding our individual selves to ensure we change the perception of the consumers of our services.
On this short note, ladies and gentlemen, I would thank you for your attention and wish you very fruitful deliberations.
Thank you and God bless you all
Mohammed Kari
Commissioner for Insurance
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