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NAICOM urges shareholders to demand insurers’ accountability

The Commissioner for Insurance, Mr Sunday Thomas, has said it is important for shareholders to ask the management of the insurance companies questions on how their companies are being managed.

Thomas spoke while responding to questions on fines paid by some insurance companies and those under receivership, during a seminar for journalists in Lagos.

He said, “A company cannot collect premium on behalf of others and not pay. We are not going to watch that. If any company has infracted on the law, it will be penalised. There are no two ways to it. The infractions are stated.

“Shareholders should be asking more questions because we have made it mandatory for every penalty to be published in your annual report. They should be asking them questions on what did you do?”

 Also with respect to dividend, he said a lot of companies had improved in payment to the shareholders.

Thomas said the commission would continue to encourage dividend payment in the insurance sector.

 He noted that it was not correct that when a company was put under receivership, it would collapse. According to him, some companies that were placed under receivership were getting back well into operation.

“If it is going beyond redemption, we will do the needful,” he said.

While speaking on some companies that were recently placed under receivership who dragged the commission to court, he said, “Because of that, NAICOM is unable to move as fast as it should, but one thing I can assure you is that it will not stop NAICOM.

“Court is part of the resolution process. We are going to enter the court, the matter will be resolved and we will continue.”

While noting that the complaints on non-payment of insurance claims had reduced, he said the commission was yet to be satisfied with the compliance

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