NAICOM to create alternative distribution channels for underwriting firms

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, 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 works 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 those hurdles.”

While speaking on the issue of bad professionals on the board of some insurance firms, he said the commission has found executive recklessness and timidity at the very top of the executive ladder in some companies as some executives feigned ignorance when asked to give account of their companies’ misconducts.

“While some have blamed the chairman or directors, some have simply claimed unawareness. Directors including Executives seem oblivious of the fact that their action can lead to criminal prosecution.

“It is true that there had been chairman that were overbearing, but any professional on the seat of a company’s Executives, should know the expectations on him are onerous,” he noted.

The insurance professional’s role in the board oversight responsibilities, according to him, is to bring in his professional competence and ethical orientation into play in board deliberations. To this end, he said 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 expected to bring the professional orientation of integrity and objectivity in his contribution in board’s decision making, he pointed out.

As a member of executive management, he said, an MD should ensure the information contained in 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.

NAICOM, according to him, finds the reverse situation where in absolving themselves, the directors blame 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 management,” Kari stated.

He equally blamed the shareholders who do not get involved in the selection of their directors or who have little concern about their professional competence.