NAICOM, SEC to partner on supervision

NAICOM, SEC to partner on supervision

Chuks Udo Okonta

The National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC) have agreed to collaborate on supervision and regulation of insurance companies quoted in the Nigerian Stock Exchange (NSE).

A statement by the Assistant Director, Corporate Affairs, NAICOM, Lucky Fiakpa, said the need to partner was reached when the Director General Securities and Exchange Commission, Ms Arunma Oteh, paid a courtesy visit to the headquarters of the NAICOM in Abuja yesterday.

The Commissioner for Insurance Fola Daniel, noted that some 10 years ago, the commission would have little or nothing to do with SEC because not more than three insurance companies where listed on the Nigerian Stock Exchange. But, today, well over 30 companies are listed on the Exchange.

He said: “Some of the companies we have primary responsibility to regulate also have one or two things to file or do with SEC by virtue of the fact that they are quoted on the Nigerian Stock Exchange. This therefore makes it imperative for the two regulators to collaborate to ensure effective supervision and regulation of the entities they have to deal with.”

 Oteh stressed the need for the two agencies to collaborate in joint inspection and supervision of insurance companies that are listed on the Exchange. She said such collaborative exercises should be done more frequently to ensure effective supervision of the companies.

She commended NAICOM’s transformation agenda which she said has led to massive awareness about the insurance sector. She particularly noted the awareness generated about the compulsory insurance products campaigns and said it was quite enlightening.

She also commended the commission’s efforts in trying to introduce micro-insurance in the country. She would want to see the insurance sector playing a key role in the economy.

“Financial inclusion is very important because all over the world, insurance assets are critical for economic development. What we see happening in pension assets should also happen in insurance assets,” she said.