NAICOM Threatens To Liquidate Insurance Companies

In order to strengthen the insurance industry, the National Insurance Commission (NAICOM) has warned that it may sanction more insurance companies through liquidation.

Sabiu Abubakar, the Deputy Commissioner, Technical, NAICOM, revealed this at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar in Lagos on Thursday.

According to him, liquidation is needed to sanitise the industry

He said, “Recently two insurance companies’ licences have been withdrawn and these are: Niger Insurance and Standard Alliance Insurance.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.” 

He added that NAICOM had strengthened its regulatory oversight to ensure that operators discharge their obligation by settling genuine claims timely, citing that insurance regulation and supervision were always the bedrock of national economic development.

“NAICOM’s reforms and regulatory initiatives would positively impact the insurance industry and the industry would witness tremendous development and growth,” Abubakar added, urging insurance practitioners to comply with and support the commission’s efforts.