Fake Insurance: NAICOM Signs MoU With Law Enforcement Agencies | Independent Newspapers Limited
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Fake Insurance: NAICOM Signs MoU With Law Enforcement Agencies

Posted: Jun 18, 2015 at 12:16 am   /   by   /   comments (0)

By Sola Alabadan – Lagos


As part of efforts to ensure the success of the Market Development and Restructuring Initiative (MDRI), the National Insurance Commission (NAICOM) has signed Memorandum of Understandings (MoUs) with relevant law enforcement agencies to rid the nation of fake insurance operators, NAICOM’s Director, Supervision, Nicholas Opara, has disclosed.

Under the MDRI, the commission has been striving to ensure enforcement of compulsory insurances, keep fake insurance operators at bay and create jobs for the teeming Nigerian youth.]

Opara stated this while presenting a paper on “NAICOM and Insurance Business Regulation in Nigeria, The Journey So Far” at a seminar organised by the coming for insurance correspondents in Ilorin, Kwara state recently.

He also said NAICOM has ensured enforcement of local content development particularly in Oil & Gas industry through the issuance of guidelines on Oil & Gas Insurance business in Nigeria.

While speaking on the insurance industry’s performance between 2014 and first quarter 2015, he said that the total asset of the industry stood at N 793.6 billion at the end of first quarter 2015, while total liabilities was N444.4 billion.

He said shareholders’ funds for the period stood at N343.4 billion, while net claims for the period stood at N 23.7billion. Management expenses for the period were N18.6 billion, while investment income for the period stood at N9.5 billion.

Besides, Opara said the industry’s net profit for period was N15.43 billion.

During the year 2014, the NAICOM’s director said the industry recorded gross premium income of N302.105 billion, while total asset was at N711.4 billion. He added that the liability of the industry for last year stood at N422.7 billion, while shareholders’ funds stood at N352.5billion.

The industry’s net claims for the period stood at N90.39 billion, while management expenses stood at N61 billion. The industry’s underwriting profit stood at N66.976 billion while net profit for the period stood at N28.430 billion.

He categorised the commission’s regulatory activities under its present administration into three broad areas as: policy holders’ protection, financial safety and stability, as well as market development.

Under policy holders’ protection, Opara said the commission did this through activities such as consumers’ education through seminars, workshops, sponsorship of TV/Radio drama, social media and other public enlightenment programmes as well as introduction of insurance into school curricula in secondary and tertiary institutions.

He also said the regulator did this through market conduct regulations in enforcement of Fair treatment of customers during pre-sales and after sales services, risk pricing and disclosure of information among others.