NAICOM seeks legal framework for effective regulation of industry

The National Insurance Commission (NAICOM) says it is desirous of the right legal framework to effectively regulate the activities of insurance firms in Nigeria.

According to the commission, its existing legal framework does not enable it to act appropriately like its counterparts in the banking sector on certain policy decisions or in punishing offenders.

Olusegun Omosehin, Commissioner for Insurance, joined by his executive management team made the remarks while addressing journalists in Lagos.

Read also: Boost for consumer confidence as NAICOM unveils complaints portal

He said the lack of the right legal framework was part of the reasons the commission has not been able to successfully execute the recapitalisation pronouncements in the recent past, or punish erring companies and operators without ending up in court.

“The banking industry has had its series of recapitalisation exercises successfully.” Does it mean that the banks don’t know where the court is? So, it’s a function of legal framework, he said.

Omosehin said a new NAICOM Bill at the Senate has just passed a first reading, as well as the Consolidated Insurance Bill, geared towards strengthening the power of the commission as a regulator.

Read also: Mohammed Kari raises objection against NAICOM’s licensing of NPF Insurance

On what NAICOM priorities are, Omosehin said, the focus of his administration has been broken into five key areas. These, he said, include protection of policyholders, capacity building, effective operation, innovation, as well as access and penetration.

Omosehin said in the commission’s desire to see insurance embedded in our national life, noting that the protection of policyholders was critical. “This, we believe, will help us as an industry to build the needed trust and confidence of the insuring public. Restoring trust and confidence is the mandate we must achieve”.

On building capacity, he said this has to do with having the right framework to enable it to regulate the industry.

On the soundness of insurance companies, he said the desire was to see that companies are financially sound to be able to meet their obligations.

“We are also focusing on innovations, and this resolves around how to expand the market and enable operators to take advantage of opportunities opening up in the industry”.