NAICOM advices shareholders on appointment of insurers’ directors

The National Insurance Commission (NAICOM) has urged shareholders of insurance companies in the country to always appoint professionals and people of integrity as directors, saying most appointments done in the past, especially by shareholders of the quoted underwriting firms, show little concern for professionalism.

The wrong choice of directors, according to the Commissioner for Insurance, Mohammed Kari, has caused setbacks for most firms.

Speaking at a forum in Abeokuta, Ogun State, Kari noted that the blame for wrong doings by some directors should be placed at the doorsteps of shareholders for not participating in the selection process of directors and having little concern about their professional competence.

“Be it as may, the blame starts from shareholders who do not get involved in the selection of their directors or who have little concern about their professional competence. Compounded by the board of directors whose basis of selecting the company’s executive is their blood or village relations or potential loyalty the executive would confer on the chairman,” he said.

Kari also lauded the industry operators for making concerted efforts on their own to address these deficiencies.

“It is of joy to hear that the Industry is making concerted efforts on their own to address these deficiencies. The Commission has welcomed these determinations and I can confirm that arrangements have gone far in the organization of mandatory directors training to supplement the efforts. The Commission’s arrangement would come with a choice of alternative date to ensure no one has any excuse to skip the training,” he said.

He maintained that while it is not the intention to turn directors into Insurance professionals, the commission believes the companies would be the better if the directors, both executives and non-executives collectively understand their responsibilities in the running of their companies.

Reacting to the accusation, General Secretary, Independent Shareholders Association of Nigeria (ISAN) and Managing Director Lancelot Ventures Limited,  Mr.Adebayo Adeleke, said: “Who approves directors? That is self-indictment. So, NAICOM approves incompetent directors.”