The National Insurance Commission (NAICOM) says more insurance firms may face sanctions through liquidation as part of their moves to sanitize and reposition the industry for efficiency.
Sabiu Abubakar, deputy commissioner, Technical, NAICOM, made this known in Lagos on Thursday.
Mr Abubakar was speaking at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar in Lagos on Thursday.
According to NAN, the theme of the seminar was titled: “Economic Policies of the Government in 2022: Challenges, Issues, and Prospects’’.
“Recently two insurance companies’ licenses have been withdrawn, which include Niger Insurance and Standard Alliance Insurance.
“Though managing the death or failure of the financial institutions is very demanding, nevertheless more may still be liquidated in order to sanitise the insurance sector,” he said.
Mr Abubakar noted that the Commission had strengthened its regulatory oversight to ensure that operators of the industry discharge their obligations by settling genuine claims timely.
The deputy commissioner said that insurance regulation and supervision were always the bedrock of national economic development.
According to him, NAICOM’s reforms and regulatory initiatives would positively impact the insurance industry and the industry would witness tremendous development and growth.
Mr Abubakar urged insurance practitioners to comply with and support the commission’s efforts.
Also speaking, CIIN’s President, Mr Edwin Igbiti, said the seminar was organised for key players in the insurance industry and other finance sub-sector to review the business environment in the country.
Mr Igbiti added that the review was for the performance of the industry in the immediate past year and way forward for the new year.
“The programme among other things examined the national budget, reviewed the thrusts of the fiscal and monetary policies of the government, and estimated how these would influence the insurance industry in particular and the economy in general,” he said.
According to Igbiti, the seminar was important considering the challenges bedeviling the country such as; insecurity, high inflation rate, debts, oil subsidy as well as the upcoming elections.
He stated that even though there was a positive projection of the global industry at the beginning of the year, the deliberation would have an effect on the insurance industry and the economy in general.
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