Commissioner for insurance Mr Fola Daniel
Ebere Nwoji
Investors in insurance industry recently lambasted finance sector regulators on account of punitive fines imposed on operating firms in the industry for various offences especially failure to meet deadline for submission of annual accounts and financial reports.
The investors also frowned on what they described as the huge sum deposited at the Central Bank of Nigeria (CBN) as statutory deposit by insurance firms.
They urged the umbrella body of insurance underwriters, the Nigeria Insurers Association (NIA) to take the matter up to the National Assembly.
The shareholders who spoke at the 23rd annual general meeting of Cornerstone Insurance plc held in Lagos described the regulators as "heartless and inconsiderate institutions", insisting
that they should return the money to the individual firms they collected it from. They noted that they should realise that the money belongs to shareholders and most of the shareholders are retirees struggling to make both ends meet from their investments in the companies they are punishing with heavy fines.
that they should return the money to the individual firms they collected it from. They noted that they should realise that the money belongs to shareholders and most of the shareholders are retirees struggling to make both ends meet from their investments in the companies they are punishing with heavy fines.
The Cornerstone shareholders said it was painful to them to see record of N128million fine paid by the company to the National Insurance Commission(NAICOM) and other related regulators because of various offences recorded against them.
THISDAY checks also reveal that another insurance firm was recently fined N40 million for similar offence.
According to Mr. Akinsonya Solomon, one of the shareholders who spoke on the issue, incessant fines heaped on operating firms by the regulators are becoming unbearable observing that virtually all insurance firms in Nigeria have been fined for one offence or the other this year.
He said it is unbecoming of the Financial Reporting Council to be putting in place regulations that keep operating firms in the system very uncomfortable.
Mr Robert Igwe another shareholder of the company wants the NIA as the umbrella body of insurance underwriters to take up the issue of statutory deposit of the industry lying idle with little or no interest with the CBN to the law makers.
He argued that the huge amount could yield good interest to the various firms if used in business adding that on the alternative, the CBN should pay interest commensurate to the quantum of money deposited by the various companies.
NAICOM as the insurance industry regulator gave insurance firms June 30th deadline for submission of their annual reports and account every year.
The commission said firms which fail to meet the deadline will risk daily fine if N5000 from July 1 until the day the firm submits the report.
The security and Exchange Commission and Nigerian Stock Exchange which also regulate the industry also have their own deadline as March 31st for submission of Annal report .
Both institutions last year compelled the industry over a hundred million as fine for late submission of accounts.
Aside penalising the operators for late submission of financial reports, NAICOM also said it places penalty fine on operating firms for various infractions.
The Commissioner for insurance Mr Fola Daniel recently said it fined a firm N60 million at a swoop fr infraction and s ready to fine them more if they continue to behave unprofessionally.
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