NGO Tasks New NAICOM Management on Urgent Regulatory Reforms
Transparent Protection Ltd/Gte, an insurance Non-Governmental Organisation (NGO), has urged new management of the National Insurance Commission (NAICOM) to urgently step up its regulatory reforms to save the sector.
Dr Sam Onyeka, the Lead Director of TPL/Gte, told newsmen in Abuja on Friday, that urgent reform was necessary to revive the insurance industry which he alleged was nearing collapse.
Onyeka said the new management should urgently build a stronger Information Communication Technology (ICT) platform to aid its online monitoring and regulatory roles and reduce costs.
The lead director said the reforms would also include the relocation of its supervisory operations to Lagos where most insurance operators were domiciled.
He also suggested the decentralisation of operations to enable states to handle claims which emanated from their zones.
”NAICOM’s insurance bureau which is currently a unit in the Commission should be made a department with a director because it is a major aspect of the commission as they handle claims and complaints.
”Without effective regulation, the insurance industry in Nigeria will soon collapse.
”Even with close monitoring of the activities of the insurance institutions as it used to be, it was difficult to guarantee 50 per cent efficiency in market discipline.
”TPL recommends that the Federal Government should consider removing NAICOM from the application of the 50% statutory revenue deduction.
”NAICOM should consider urgent reforms including staff rationalisation, relocating its supervisory operations to Lagos where the operators are concentrated, and building a strong IT capacity.
”In the long run, the Federal Government may think of increasing the percentage of the insurance supervisory levy.
”Apart from requiring amendment of the existing law, this may amount to indirect taxation on policyholders which may further drive the masses into poverty,” he said.
The newly appointed Commissioner for Insurance (CFI), Mr Olusegun Omosehin who assumed duty on Friday, said that the new management would set a new tone for the country’s insurance sector.
Omosehin who officially took over from his predecessor, said he was optimistic to achieve a more vibrant insurance sector.
”The Federal Government intends to achieve a one trillion dollar economy by 2026.
”With this target in cognisance, the insurance sector is expected to play a critical role and contribute to its achievement,” he said.
The outgoing CFI, Mr Sunday Thomas also handed over officially to Omosehin. Equities Investors Gain N466bn Amidst Mixed Earnings Releases
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