National Insurance Commission (NAICOM) will engage other stakeholders in the finance sector to mitigate the cost of raising funds in the current bid to recapitalise the industry.
Acting National Insurance Commissioner, Mr Sunday Thomas who spoke in Lagos on Wednesday at the insurance directors’ conference also disclosed that the commission had received the recapitalisation plan of insurance companies.
While commending the recapitalization plans and describing them as good, he stated that NAICOM was already collating the report and will soon commence the review.
”I can only encourage sustained efforts at earlier completion of the plans”, he stressed and gave the assurance that the commission was engaging other relevant regulatory bodies and agencies for possible palliatives that will reduce the cost of recapitalization.
ALSO READ: Nigerian insurance firms healthy ―NAICOM
In his paper to the conference, a copy of which was sent to Nigerian Tribune, Thomas explained that the insurance industry had witnessed series of changes owing to reforms embarked upon by NAICOM in the last few years.
“The Commission shall continue to introduce new reforms and initiatives in line with international best practices in our march towards achieving the full potentials of the industry.
“The Insurance in Nigeria with a contribution to the nation’s GDP at less than 1% has underperformed its potential especially when compared with other sectors in the financial services industry.
”I believe that once we can successfully navigate this corner, we could be on our way to entrenching a financially solid, vibrant, viable and active insurance market that would bring about not only an increase in penetration but a substantial increase in the industry’s contribution to GDP.
“The will also simulate accumulation of long-term funds for infrastructural financing, job creation, and an improved Return on Investment.
” It is long overdue that we make changes in the right direction.
“Successful economies are characterized by a strong investment culture of which the insurance industry plays a vital role.
He lamented that the low level of effectiveness of corporate governance oversights in the insurance sector remains one of the major regulatory concern to the Commission.
This is for the simple fact that the failure of corporate governance in the year’s past, have played a prominent role in the death or distress of most corporate organizations the world over, Nigeria inclusive.
“Over the years, the Commission has made attempts at entrenching good corporate governance culture in the insurance sector”, he stated.