The National Insurance Commission (NAICOM) has warned it may sanction more insurance companies through liquidation in order to “sanitize the insurance sector.”
Deputy Commissioner, Technical, NAICOM, Mr Sabiu Abubakar, disclosed this on Thursday at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar in Lagos, according to the News Agency of Nigeria.
Abubakar said, “Recently two insurance companies’ licences have been withdrawn and these are: Niger Insurance and Standard Alliance Insurance.
“Though managing the death or failure of financial institutions is very demanding, nevertheless more may still be liquidated in order to sanitise the insurance sector.”
“NAICOM’s reforms and regulatory initiatives would positively impact the insurance industry and the industry would witness tremendous development and growth,” Abubakar added.
He urged insurance companies to comply with and support the commission’s efforts.
Recall that Investogist reported that NAICOM revoked the operational licenses of embattled Niger Insurance Plc and Standard Alliance Insurance Plc.
The two insurance companies have been known to owe huge unpaid claims to their policyholders. The duo had been expelled from the Nigerian Insurance Association(NIA) for failure to meet claims obligations to policyholders.
NAICOM’s statement read in part: “This is to notify all insurance stakeholders and members of the public that the National Insurance Commission has cancelled the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029 with effect from the 21st day of June 2022.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
