We are regulator not killer - NAICOM

Commissioner for Insurance Fola Daniel

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has responded to the public outcry on the manner it is managing the affairs of the insurance industry, by saying that it is a regulator and not a killer.

The Deputy Commissioner, Finance and Administration NAICOM, George Onekhena, disclosed this to journalists in Lagos, when responding to questions on why the commission has not been able to get underwriting firms to comply with the deadline for submission of their International Financial Reporting Standard (IFRS) accounts.

He noted that the commission has taken some steps to ensure that the firms comply with the mandate on submission of accounts, adding that one of such steps is the issuing of queries to defaulting firms. He said the responses from the queries are presently being examined by the commission and that the decisions reached will soon be made public.

He said the commission is also examining the financial reporting supply chain, which covers the activities of the companies, the boards and the auditors.

“We are looking at what we called the financial reporting supply chain, which covers the companies, the boards and the auditors. We want to find out whether the problems are from the companies; the boards or the auditors. For example we got a report from a company, which showed that the problem was from the board and we issued a specific deadline.

"We are taking specific actions, we cannot as regulators operate without measures, and we have to be very calculative, because, it is better for a company to survive, than for a company to be dead. Because these companies recruit people, and that is why we have to take a measure approach. Like our name goes - regulator, we are not killers. There are number companies that have challenges and we have taken actions, and in the next couple of days you will hear about our actions,” he said.        

It will be recalled that the International Monetary Fund (IMF) in a recent evaluation of the operations of NAICOM has urged the regulatory body to adopt a more rigorous regulation to protect policyholders and the integrity of the industry.

IMF said the commission's regulatory activities indicated that the industry is under-regulated and thereby recommended a more rigorous regulation to protect policyholders and the integrity of the industry.