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Chuks Udo Okonta
Insurance broking firms registered in the names of their owners may not be affected by the proposed 10 years tenure for Managing Directors, Inspen has learnt.
It was gathered that this window was created by the National Insurance Commission (NAICOM) to assuaged aggrieved brokers who have opposed the decision and are working hard to see that it does not see the light of the day.
A source said firms registered in their owners names were given the respite because they were considered as as sole proprietorship outfits while those incorporated with general names were seen as public enterprise, hence must align with the policy when enacted.
Brokers have continued to kick against the policy, claiming that the time given was so small to grow a company. They also claimed that frequent changes in leadership of broking firms which are often small in sizes will sniff lives out of them.
Former Commissioner for Insurance Fola Daniel, said tenure for Managing Directors of Insurance and broking firms as proposed to ensure continuity and development of manpower.
He noted that a situation where Managing Directors fail to create opportunities for members of their organisations is inimical to the industry.
He said: “In the exposed 24 – page draft, only one line says chief executive officers should not spend more that 10 years, because there must be continuity and we must develop manpower. I know an insurance company where the CEO has been there for 25 years.
“In the past, in this country, I knew a managing director of a company, that the person next to him was an assistant manager. That is not good for the industry. Some of our managing directors are doing very well, but behind them, there is nobody. I think that is the philosophy behind limiting tenure.”
He noted that the commission will tailor the policy towards that of the Central Bank of Nigeria (CBN), stressing that there is no need for apprehension as the decision if considered will be good for the industry.