New Telegraph

NAICOM shops for investors to recapitalize industry

The National Insurance Commission (NAICOM) is shopping for investors as it moves to recapitalise the insurance industry. NAICOM confirmed yesterday that the focus would be on distressed insurance firms.

 

This was as the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed directed the Commission to compel insurance firms to introduce new products and policies. NAICOM’s Chairman, Governing Board, Dr Abubakar Sani said this in Abuja when the board paid a courtesy call on the minister.

 

Zainab inaugurated the board in May. He informed the minister that they are: “Working hard to proffer solutions to curb the ugly trend of insurance failure by instituting strong regulatory measures in the board of directors of all the insurance entities to make them perform better, by adhering to the corporate rules that establish them.”

 

NAICOM, he added, will: “Enforce the professional code of ethics among the insurance entities, strengthen their corporate governance, which the board believes will sanitize the market.”

 

He said the board will in due course: “Revisit the matter of recapitalization of the insurance industry and clean up its  act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies.”

 

Sani also said the board will create an enabling environment: “For the insurance industry to beef up their capital through mergers and acquisitions, and invitation of fresh capital from the local and international investors.”

 

He added: “Investors Forum where insurance companies that need capital will interact with potential investors: insurance companies will come together to showcase themselves where there will be due diligence to enable potential investors to know their financial status.”

 

The board appealed to the minister to support their effort to look: “For investors that would make the Nigerian insurance industry robust to effectively strengthen the entities to play their roles in making other businesses thrive in the country.” The chairman said the Commission: “Is working to sanitize the market and will be taking out companies that are not measuring up to expectations.”

 

He assured the minister that NAICOM will build a strong, viable and 21st-century insurance industry in addition to deepening insurance in the country, and “raise positively, its contribution to the domestic gross product in the Nigeria economy”.

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