The National Insurance Commission (NAICOM), has begun the enforcement of the 10-year tenure limit for managing directors/CEOs and executive directors of insurance and reinsurance companies, with Ben Ujoatuonu, managing director/CEO of Universal Insurance being the latest casualty.
NAICOM is the regulatory authority for the Nigerian insurance industry.
Industry sources reveal that Ujoatuonu is now on retirement leave as the Head of the Technical Operation has taken charge in an acting capacity, a direct result of the National Insurance Commission’s crackdown on non-compliant insurers.
NAICOM had queried the Company for not adhering to the policy directive and threatened to impose stiff sanctions if nothing was done.
In a letter sent to the company, NAICOM ordered Universal Insurance to suspend Ujoatuonu immediately and provide evidence within seven working days.
The commission also mandated that the executive director of operations, take the reins as acting managing director of the underwriting firm for 90 days.
Read also: NAICOM cautions on inflation as insurers navigate macroeconomic environment
In the letter titled, ‘Regulatory directive-enforcement of tenure limit for executive director of insurance and reinsurance companies in Nigeria,’ the regulator said, it has been observed that “you have not responded to the letter neither have you taken any action against the executive in questions.
In consequence of the foregoing, the board is hereby directed by the commission to immediately suspend the MD/CEO, Ujoatuonu Benedict Ugochukwu and forward evidence of the same to the Commission within seven working days from the date of receipt of the letter.
“Mandate the Executive Director, Technical to take over the running of affairs of the company for a period of 90 days within which a substantive MD/CEO will be presented to the commission for approval.”
To this end, Universal Insurance apologised for its oversight, citing a truncated transition process and the sudden resignation of its former Technical Operations Executive Director. It added, “We, however, pressed on with the search for suitable persons to man the positions mindful that given the growth we have achieved in recent times; we needed to put the right people in place to maintain the tempo. It was only recently that we received the commission’s approval for a new ED, technical operations.”
NAICOM’s latest move sends a clear message that strict compliance is non-negotiable. With NAICOM’s watchdog role intensifying, industry players are bracing for further shake-ups.
Investigation revealed that while the regulator has queried other companies affected, there were indications that NAICOM will take sterner action against the affected companies, just as some underwriters have gone shopping for replacements for those who have spent 10 years or more.
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