My biggest challenge as Commissioner for Insurance - Daniel

Chuks Udo Okonta

The Commissioner for Insurance Fola Daniel, says the Dana Airline crash remains his greatest challenge since he took over the mantle of regulating the insurance industry.

Daniel, who will be leaving the National Insurance Commission (NAICOM) by the end of this month said, in an interview with a daily newspaper that the crash was very challenging because of the huge casualty, adding that he had apprehension about response of insurers to such a huge loss given the untidy circumstances surrounding the insurance protection of the aircraft. 

He noted that the professionalism and maturity displayed by the affected underwriters, had today, made him a happy man even as he leaves the commission.

"I will say the Dana crash which was a national calamity, was very challenging. I felt distraught about the huge casualty. I had apprehension about response of insurers to such a huge loss given the untidy circumstances surrounding the insurance protection of the aircraft. 

"But today, am proud to say that the industry acquitted itself most satisfactorily, culminating in rancor free settlement of liability which accrued to the local market," he said.

Daniel said the most difficult decision he took as a commissioner, was the handling of the fuss between his former organisation - Globe Reinsurance and Nigeria Reinsurance

He said: "Well, several decisions were taken from time to time in the course of my duty. I wouldn’t say any particular one is the most difficult. On reflection however, the quest by the owners of the defunct Globe Reinsurance was indeed a tough decision I was confronted with. You will recall that I was the Managing Director of Globe Reinsurance Company which went into merger arrangement with Nigeria Reinsurance prior to my appointment as Commissioner.

"As a result of the re-verification exercise of capitalisation in 2007, it was discovered that the major partner in the merger did not qualify for recertification. The owners of Globe Re anchored by application to repossess their licence on the strength of being misled to merge with Nigeria Re. There were merits in the argument, but to revalidate the licence in my opinion could scuttle the entire recapitalisation exercise. It could set in motion similar requests by companies that were unable to qualify to remain as Insurers.

"The other important factor was my association with the company and my present position. People were bound to read meaning to the validation. Globe Re had significant sympathy for their application at the highest level of government at the time. I simply weighed all the pros and cons and came to the conclusion that the request be declined. This decision obviously generated loss of friends for my person, particularly from owners of Globe Re, some of whom were my industry mentors. No regrets because a decision needed to be taken, and I took one looking at the larger picture and national interest."

Daniel said he will want to be remembered as a Commissioner for Insurance that had a unique opportunity to make some impact, adding that he leaves posterity to justify him.