The insurance regulator, the National Insurance Commission (NAICOM) has cancelled the registration licences of two underwriting firms, Niger Insurance plc and Standard Alliance plc.
The commission in a statement Tuesday said it has also appointed Sanya, Ogunkuade of Plot 217, Upper Grace Plaza, 3rd Floor (Left Wing), Shetima Munguno Crescent, Behind Julius Berger Equipment Yard, Utako, Abuja as the receiver/liquidator for Niger Insurance, and Kehinde Aina of Aina Blankson LP, 5/7, Ademola Street, SW Ikoyi, Lagos, as the receiver/liquidator for Standard Alliance Insurance plc.
Rasaaq Salami, head, corporate communications and market development on behalf of the Commissioner for Insurance, NAICOM signed the statement.
“This is to notify all insurance stakeholders and members of the public that the National Insurance Commission has cancelled the certificates of registration of Standard Alliance Insurance plc, RIC – 091 and Niger Insurance plc, RIC – 029 with effect from June 21, 2022.”
“All stakeholders are advised to forward their enquiries to the respective receiver/liquidator for each company for their necessary action.”
The commission assured all stakeholders of the safety and protection of their interests, the salami said.
BusinessDay had reported two months ago that NAICOM notified the board of two insurance companies, Standard Alliance Insurance plc and Niger Insurance plc of its intention to cancel their certificate of registration.
The regulator’s action is predicated on the inability of both firms to come out of the woods having struggled to operate for some time now with high-level insolvency and liquidity crises.
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BusinessDay gathered from a high-level industry source that NAICOM had written to both firms between March 29 and 30, 2022, informing them of its intention to cancel their licences. The notice, according to our source, expired in 30 days.
Before now, both companies have struggled to pay policyholders’ claims, staff salaries and exited staff gratuities with many of the affected clients facing frustrations, particularly with life policies.
Some of the customers had written petitions to NAICOM, NIA or went to court, but unfortunately, all efforts to rescue the companies through new investors proved abortive, as investors shied away after observing their liability profiles.
The Nigerian Insurers Association (NIA), the umbrella body of the underwriting firms had also applied a self-regulatory measure before now, suspending the companies from its membership list and helping affected clients to resolve their issues, but that unfortunately could not save the firms.
