Revealed! NAICOM Threatens to Sack Boards of Weak Insurance Firms

• Weak insurance firms in the country may soon lose their position in the market according to the National Insurance Commission
• This came after NAICOM sacked the board and management of Africa Alliance Insurance and appointed an interim board
• The commission said with what happened in African Alliance, an operational line has been drawn for insurance companies in the country

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

NAICOM recently fired Africa Alliance Insurance's board and management. Photo Credit: NAICOM
Source: UGC

The National Insurance Commission (NAICOM) has threatened to implement similar measures against other insurance companies that exhibit signs of weakness and are unable to fulfill their claims and other obligations. As a result, weak insurance companies in the nation may soon lose their place in the market.

Recently, the commission fired Africa Alliance Insurance's board and management and appointed an interim board and management to take over the company's operations going forward.

According to the commission, an operational line has been drawn for the nation's insurance businesses in light of what transpired in African Alliance, the extended grace time it granted the company to adapt, and the company's terrible attitude of dribbling the regulator.

During a recent press briefing in Lagos, Dr. Usman Jankara, the Deputy Commissioner for Insurance Technical, stated that the operational line has been initiated by the regulatory action against African Alliance Insurance Plc.

He issued a warning, saying that any business that crosses the line going forward will face the proper regulatory response.

In a same vein to his Deputy Commissioner Technical, Commissioner for Insurance Ayo Olusegun Omosehin stated that the Commission would make sure that all directors whose positions were taken over through regulatory intervention were listed in NAICOM's Black Book.

According to Omosehin, such people would never be permitted to serve as directors or hold any executive positions in the insurance sector. He emphasized that they may go and establish new lives in fields where they are welcomed, but not in the insurance business.

NAICOM appoints interim MD, others

Legit.ng reported that African Alliance Insurance Plc, one of Nigeria's oldest life insurance businesses, had its board and management fired by the National Insurance Commission (NAICOM).

This came after years of insolvency and noncompliance with policyholder and annuitant obligations.

As the main watchdog over the insurance industry, the Commission declared in a press release that as of October 30, 2024, it has assumed control of the Board and Management of African Alliance Insurance Plc.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng