ABUJA (Sundiata Post) – The National Insurance Commission (NAICOM) is set to create alternative distribution channels which insurance companies can explore to sell their products and services across the country.
The Commissioner for Insurance, Alhaji Mohammed Kari, who stated this at the 2016 Insurance Professional Forum in Abeokuta, Ogun State over the weekend, added that the commission has gone far on the preliminary work and draft guidelines in this direction, saying the motive of this is to increase the penetration of insurance services in Nigeria.
The preliminary work being done, he said, includes the review of existing intermediation structures, noting that this would also enhance partnership with other sectors of the economy.
According to him, “We acknowledge the market and the players could meet challenges as we seek to establish these channels, we however believe that in the new spirit of consultation, we shall scale the hurdles.”
While speaking on the issue of bad professionals on the board of some insurance firms, he revealed that the commission has found out that there exists executive recklessness and timidity at the very top hierarchy of some of the companies as some executives feigned ignorance when asked to give account of their companies’ misconducts.
“While some have blamed the Chairman or Directors for some of these infringements, some have simply claimed to be unaware. Directors including executives seem oblivious of the fact that their actions could lead to criminal prosecution.
“It is true that there had been some overbearing board chairmen in the industry, but any professional on the seat of a company’s executives, should know the expectations from him are onerous,” he noted.
The insurance professional’s role in the board oversight responsibilities, according to him, is to bring in his competence and ethical orientation into play in board deliberations. To this end, he said the managing director is expected to provide explanations and clarifications on issues when necessary in the course of the board’s work as this is more so on technical insurance issues.
He is also said he is expected to bring his professional orientation of integrity and objectivity in his contribution to the board’s decision making, he pointed out.
As a member of executive management, he explained that the managing director should ensure the information contained in the board papers are accurate and complete in terms of what the board should know about the insurance entity and reasonableness of explanations offered for any matter being presented to the board for special attention or deliberation.
He also said NAICOM finds the reverse situation where in absolving themselves, the directors blame the management for corporate misconduct.
“It is not uncommon to hear some directors complain that the information or explanation given to them by NAICOM during intervention-related meetings was never given to them by the management,” Kari stated.
He equally blamed the shareholders who do not get involved in the selection of their directors or who have little concern for their professional competence.