SPEECH BY THE RT HON PRINCE CHIBUDOM NWUCHE OFR, CHAIRMAN, GOVERNING BOARD OF NAICOM AT THE INTERACTIVE SESSION WITH CEOs OF INSURANCE ENTITIES ON TUESDAY, MARCH 11, 2014

Commissioner for Insurance Fola Daniel; Chairman Governing Board, National Insurance Commission (NAICOM) Prince Chibudom Nwuche and a Board Member Prince Okechukwu Nonyelu at an interactive session between Governing Board, Members of NAICOM and Insurance Industry Operators in Lagos.

SPEECH BY THE RT HON. PRINCE CHIBUDOM NWUCHE OFR, CHAIRMAN, GOVERNING BOARD OF NAICOM AT THE INTERACTIVE SESSION WITH CEOs OF INSURANCE ENTITIES ON TUESDAY, MARCH 11, 2014


Protocol:

Ladies and gentlemen, you will recall that the governing board under my leadership was inaugurated on September, 10, 2013. We refrained from meeting you to enable my leadership gain closer understanding of the context of our responsibilities. This is imperative to enable us key into Mr. president's Transformation Agenda.

This interaction is aimed at providing a platform for exchange of notes on the performance of the Nigerian insurance industry, to brainstorm and agree on the areas requiring urgent attention for improvement and mutual support.

Thus, our gathering here this evening is designed to achieve three prime objectives namely: Familiarization with Chief Executive Officers of insurance entities , gain deeper understanding of issues and concerns of operators and chart a critical path for improvement of mutual support.

The overall thrust of the commission's activities is to support the Transformation Agenda of the Federal Government while providing an appropriate regulatory framework for the activities of insurance institution in Nigeria.

The developmental agenda which encapsulate a wide range but attainable developmental roadmap, as it relates to the Financial Services sector, is the the enhancement of financial literacy in Nigeria and repositioning of the insurance sector to be able to play a vital role in the nation's economy.


I have since come to understand the giant stride being recorded in the insurance sector in the bid to play its in the transformation value-chain.

The insurance has a huge potentials waiting to be tapped. The commission has over the years implemented a number regulatory and developmental initiatives that have significantly improved the condition in the Nigerian insurance sector and enhanced its attractiveness to investors.
A good evidence of this is the increased number of foreign investors that have taken equity interests in insurance institutions in Nigeria. In specific terms, there are now 10 Nigerian institutions with significant foreign ownership as against just 3, five years ago and more foreign investors are making enquiries on requirement for participation in the Nigerian insurance sector.

In the light of the above, I will like to look at some strategic goals of the governing board under my leadership, which may be of interest to you.

1 . Deepen insurance penetration in Nigeria.- In addition to the ongoing efforts to facilitates compliance with the laws on compulsory insurance, the governing board is ensuring the successful implementation of the financial inclusion initiatives such as Micro insurance and Takaful insurance.

I expect you - the industry operators - to take advantage of this window of opportunities to grow your business and increase your share of the market.

2. Strengthen Insurance Institutions - The Governing Boars will continue to support the management of the commission in ensuring :
i) The maintenance of adequate level of capital
ii) implementation of Risk Management Framework for insurance institution
iii) Continued compliance with IFRS by insurance institutions to sustain the integrity of financial reports.
iv) Compliance with all relevant laws and regulations.
v) Implementation of ''No premium no cover policy" has led to improved liquidity for insurance companies to pay claims promptly. Therefore, no insurance company should have any excuse to delay let alone refuse payment of genuine insurance claims.

3. Enhanced NAICOM's Regulatory Capacity and Oversight-
I) Manpower development and effective Performance management System.
ii) Appropriate deployment of information and Communication Technology infrastructure for effective discharge of the commission's oversight functions.
iii) Intensive supervision of insurance companies according to their risk profile.
iv) Work towards passing of Insurance Bill into law.

4. Effective Management of Stakeholders' Expectations
I) Conduct Regular interaction and stakeholders' panels to exchange views
ii) Complaint procedures and market conduct to ensure that insurance policyholders are treated fairly and that they have avenue to seek redress.
iii) Support Management efforts to strengthen the complaint Bureau's buoyed by the establishment of a call contact centre for easy accessibility and prompt complaint redress management by adopting zero tolerance for non-settlement of genuine claims or delaying claims settlement.

5. Optimize Revenue Collection and Effective Management of resources:
I) Prompt receipt of Statutory Supervisory Levy,
ii) Expanding the Revenue Base of the commission and
iii) Installation of best practices in internal control system.

It is also instructive to reiterate that the insurance sector is one very important segment of the Financial services sector of the economy which must be appropriately regulated to enable it play a pivotal role in the economy.

We are not unmindful of the fact that there are indeed some challenges encountered by you in the course of doing your business. But you will agree with me that while some of these challenges are certainly beyond your immediate control , a lot of the challenges are self-inflicted. So, the onus is really on you to address these challenges.

Conclusion:

Let me conclude by informing you that the Governing Board will continue to resolutely support the resolve of NAICOM's management to ensure effective supervision of the industry in order to protect policyholders and Government Strategic Assets.

Whilst NAICOM continue to operate within the confines of all extant laws, all practitioners in the sector must operate with the rules and internal norms as a means towards deepening public trust and enhancing contribution to the nation's GDP

In carrying out this statutory responsibility, I must emphasize that there should be no one or group to be excluded from compliance with the rules and regulations.
Indeed, there shall be no sacred cows, as nobody will be allowed to be above the laws.


Thank you for time and attention


Rt. Hon. Prince Chibudom Nwuche, OFR
Chairman, Governing Board, NAICOM