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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has charged shareholders of insurance companies to elect competent individuals as board members and engage on regular performance evaluation to save their firms from collapse.
Commissioner for Insurance Sunday Thomas, said this when members of Independent Shareholders Association of Nigeria (ISAN), visited NAICOM in Abuja. He also tasked shareholders to elect qualified individuals as audit committee members.
Thomas noted that NAICOM needs the support of shareholders to ensure companies live up to their responsibilities, stressing that NAICOM is committed to protection of all stakeholders – policyholders; shareholders and residual owners.
He told the shareholders to hold members of board of their companies responsible for most problems suffered by their companies, stressing that as investors, they should be interested on how their investments are managed.
The Commissioner urged the shareholders to promote corporate governance by ensuring competent individuals are elected as board members of their companies and implored them to take responsibility of internal evaluation of board reports and comport themselves during annual general meetings.
He charged shareholders elected to internal audit committee to exercise their duties and ensure quality control.
Responding to the shareholders demand for better value of their shares at the Nigerian Exchange, Thomas said investors in insurance sector need to be very patient so as to maximize their profits, adding that there is beautiful future for the sector.
He also told the shareholders that insurance companies, do comply with the local content policy, adding that companies only cede abroad risks they do not have the capacity to underwrite.
“Shareholders need to be educated on how they insurance industry works and the capital market by way of looking beyond the financials,” he posited.
National Coordinator Independent Shareholders Association of Nigeria, Moses Igbrude, applauded NAICOM for the meeting, whilst seeking for involvement of shareholders in major decisions taking on companies.
He expressed misgivings on how some foreign firms were allowed to take over 100 stakes in some companies without the involvement of minority shareholders.
He implored NAICOM to work together insurance practitioners to promote insurance education, stressing that most Nigerians don’t buy insurance due to wrong perception arising from low awareness.
