Pension News

More Nigerian Insurance Companies to be Shut Down – NAICOM

The National Insurance Commission (NAICOM) has said that more insurance companies may be sanctioned through liquidation as part of its moves to reposition the industry.

The Deputy Commissioner, Technical, NAICOM, Mr Sabiu Abubakar, made this known at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar in Lagos on Thursday. The theme of the seminar was: “Economic Policies of the Government in 2022: Challenges, Issues and Prospects’’.

Abubakar noted that NAICOM had strengthened its regulatory oversight to ensure that operators discharge their obligation by settling genuine claims timely. The deputy commissioner said that insurance regulation and supervision were always the bedrock of national economic development.

He noted that NAICOM’s reforms and regulatory initiatives would positively impact the insurance industry and the industry would witness tremendous development and growth. Abubakar urged insurance practitioners to comply with and support NAICOM’s efforts.

Recall that in June 2022 NAICOM revoked the license of two insurance companies; Niger Insurance and Standard Alliance Insurance. In a statement by NAICOM’s spokesperson, Rasaaq Salami, NAICOM said, “This is to notify all insurance stakeholders and members of the public that the National Insurance Commission has cancelled the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029 with effect from the 21st day of June 2022. Although no official reason was given for the revocation of the insurance firms’ operating licences, NAICOM by law can revoke the certificate of registration of an insurer, if the insurer is insolvent, about to suspend payment of claims to any extent, or unable to meet its obligations.

PensionNigeria notes that for retiree on life annuity, where the license of the Insurance company is revoked by NAICOM, the Retiree Life Annuity (RLA) Portfolio with the liquidated companies will be transferred to other insurance companies. The Revised Regulation on Retiree Life Annuity mandates that NAICOM to notify National Pension Commission (PenCom) of such revocations and transfers.

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