Code of governance `building block’ for insurance regulation
Mr Mohammed Kari, Commissioner for Insurance, National Insurance Commission (NAICOM ), on Friday said code of governance was building block for regulating insurance business.
Kari said this in Abeokuta while presenting a keynote address at a Retreat organised by NAICOM for the media.
According to him, unless proper compliance of the code of governance is established, the commission will not move forward on Risk Based Supervision.
He said that a code of governance for the sector was released in 2009 following the economic crisis, adding that the commission directed operators in the industry to ensure full compliance with the code.
Kari, however, stated that the concept of risk-based supervision had been misinterpreted by regulators and the media.
He explained that the misinterpretation was the major reason for selecting “Risk-Based Supervision’’ as theme of the retreat “to educate all on the international norm of risk supervision.’’
He announced that full implementation timetable that would include governance, finance and risk management on how Risk Based Supervision would be managed would be released in the second quarter of 2016.
He remarked that the media had often confused “consolidation’’ with closure of companies, explaining that consolidation in risk supervision context was operation of companies in a bracket that capital and asset would permit.
”It will identify companies that are too weak to insure certain companies and ensure they do not venture into such companies.”
Kari expressed optimism that with collaboration with the media, NAICOM would create awareness and sensitisation, especially to consumers of insurance products to the benefits of insurance.
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